Document:

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                                                                    EXHIBIT 10.1

                       INTER-COMPANY REINSURANCE AGREEMENT

      THIS INTER-COMPANY REINSURANCE AGREEMENT ("Agreement") is made and
effective January 1, 2005, by and between Star Insurance Company ("Star"), and
Ameritrust Insurance Corporation, Savers Property and Casualty Insurance Company
and Williamsburg National Insurance Company, (hereinafter collectively referred
to as "Affiliated Companies").

                                    RECITALS

      WHEREAS, the parties hereto are engaged in the transaction of various
forms of property, casualty, medical malpractice, commercial auto and workers'
compensation insurance business in the United States and are a member of the
Insurance Company Holding System of Meadowbrook Insurance Group, Inc.;

      WHEREAS, Star shall be considered the lead company for the purposes of
this Agreement;

      WHEREAS, the parties wish to enter into an Inter-Company Reinsurance
Agreement to conform with state legal requirement;

      NOW, THEREFORE, the parties agree as follows:

                                    ARTICLE I
                            APPLICATION OF AGREEMENT

      This Agreement is effective as of 12:01 a.m. on January 1, 2005, (the
"Effective Date") and applies to all insurance risks of the Affiliated Companies
located in the United States as of the Effective Date, as well as to all such
risks written and assumed thereafter.

                                   ARTICLE II
                              REINSURANCE AGREEMENT

      (a)   The Affiliated Companies hereby agree to cede to Star and Star
            agrees to reinsure, 100% of the liabilities and expenses of the
            Affiliated Companies existing as of January 1, 2005 and during the
            term of this Agreement relating to all insurance and reinsurance
            policies issued by or on behalf of the Affiliated Companies with
            outstanding liabilities as of the Effective Date, as well as written
            or assumed thereafter.

      (b)   Star hereby agrees to cede and the Affiliated Companies hereby agree
            to reinsure Star, their Respective Percentages (as set forth in
            Appendix A) of the liabilities and expenses of Star existing as of
            January 1, 2005 and occurring during the term of this Agreement
            relating to all insurance and reinsurance policies issued by or on
            behalf of Star with outstanding liabilities as of Effective Date, as
            well written or assumed thereafter.

            The liabilities ceded under this Article II(b) shall be net of
      reinsurance ceded to excess of loss and/or quota share reinsurers,
      excluding the parties hereto and shall not include liabilities for federal
      income taxes, liabilities incurred in connection with investment
      transactions, liabilities for dividends and other liabilities not incurred
      in connection with underwriting and claim operations.

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                                   ARTICLE III
                              PREMIUMS AND RESERVES

(a)   The Affiliated Companies agree to transfer to Star, and Star agrees to
      accept, all premium and reserves related to the business ceded to Star
      under Article II.

(b)   Star agrees to transfer to the Affiliated Companies their Respective
      Percentages of the premium received and reserves maintained by Star for
      its own account and for business reinsured by it under Article II.

      The premium ceded under this Article II(b) shall be net of reinsurance
premium placed with unaffiliated quota share or excess of loss reinsurers. Until
Williamsburg National Insurance Company receives authority to write disability
insurance in California and Michigan, disability insurance will be excluded from
this agreement.

                                   ARTICLE IV
                               INVESTMENT EXPENSES

      Notwithstanding anything to the contrary in this Agreement, no investment
expenses of any party (including costs of personnel) shall be allocated based on
premium volume, but such expenses shall be allocated on a cost basis among the
parties.

                                    ARTICLE V
                              RESPECTIVE PERCENTAGE

      The term "Respective Percentage" as used in this Agreement shall be as
stated in Appendix A hereto.

                                   ARTICLE VI
                          OTHER REINSURANCE AGREEMENTS

      Star and Affiliated Companies agree that all reinsurance to be ceded to
excess of loss and quota share reinsurers, excluding the parties hereto shall be
ceded by and in the name of Star.

                                   ARTICLE VII
                                   ACCOUNTING

      Accounts, including reports for premiums and losses, and payment of losses
shall be made no less frequently than on a quarterly basis, unless there is no
activity during the period. The report of premiums and losses shall set forth
the ceding Company's total loss and loss expense reserves on the policy
obligations subject to this agreement. A ceding company may make a request at
any time for immediate payment of a recovery and the funds will be made
available without delay.

                                  ARTICLE VIII
                           POLICY AND CLAIMS HANDLING

      As of the Effective Date of this Agreement, the Affiliated Companies
hereby authorize and empower Star to collect and receive all premium and other
recoverable amounts, and to

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take charge of, adjust and pay all losses with respect to any and all contracts
and policies of insurance issued by the Affiliated Companies and to reinsure,
administer or terminate all such contracts and policies as appropriate.

                                   ARTICLE IX
                                   ASSIGNMENT

      Each of the Affiliated Companies assign to Star all right and interest of
such Affiliated Company in its agents' balances and uncollected premium whether
due or overdue underwriting expenses, as well as all right, title and interest
in regulatory pools, associations or assessments, and any other underwriting
assets and related liabilities. In turn, Star hereby transfers and assigns to
each Affiliated Company their Respective Percentage of all premium, underwriting
expenses and all title and interest in regulatory pools, associations or
assessments and other underwriting assets and liabilities.

      Each of the Affiliated Companies assign to Star all right and interest of
such Affiliated Company in reinsurance agreements entered into by it, and
authorizes Star to take such actions as may be necessary to execute transactions
pursuant to such reinsurance agreements.

                                    ARTICLE X
                                 RIGHT TO OFFSET

      The obligation of each party under this Agreement to transfer underwriting
assets and liabilities to another party may be offset by the reciprocal
obligations of such other party so that only the net amount of such underwriting
assets and liabilities shall be required to be transferred.

                                   ARTICLE XI
                             CREDIT FOR REINSURANCE

      Each participant to this Agreement shall take full credit for all
liabilities ceded to the other participants. To the extent that any participant
is not identically licensed in the other participants' states of domicile, the
ceding company will either retain sufficient funds withheld trusts or will
obtain adequate letters of credit from the assuming party to secure reinsurance
recoveries.

                                   ARTICLE XII
                                 ORIGINAL TERMS

      The terms and conditions of the reinsurance hereunder shall in all cases
be identical with the terms and conditions of the original insurance.

                                  ARTICLE XIII
                              INDEPENDENT OPERATION

      Notwithstanding any other provision of this Agreement, Star and the
Affiliated Companies agree: (a) that each company owns, has custody of and keeps
its own general corporate accounts; (b) that each company owns all the records
of its business; (c) that each company has the ultimate veto right on its
underwriting; (d) that each company has the ultimate right to cancel its risks;
(e) that each company has the ultimate responsibility for and

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control of claims adjustment and claims payment and investment management; (f)
that premium collected by Star as provided for in the Agreement shall be held
and paid by Star in a fiduciary capacity under this Agreement; (g) that each
company retains the right to cancel this Agreement at any time as stated in
Article XIV; and (h) this Agreement may not be assigned by any party without the
written consent of all other parties and applicable regulatory agencies.

                                   ARTICLE XIV
                                   INSOLVENCY

      In the event of the insolvency of any company that is a party to this
Agreement, this reinsurance shall be payable directly to the company, or to its
liquidator, receiver or conservator or statutory successor in the basis of the
liability of the company without diminution because of the insolvency of the
company or because the liquidator, receiver, conservator or statutory successor
of the company has failed to pay all or a portion of any claim. It is agreed,
however, that the liquidator, receiver, conservator or statutory successor of
the company shall give written notice to the reinsurers of the pendency of a
claim against the company indicating the policy or bond reinsurance which claim
would involve a possible liability on the part of the reinsurers within a
reasonable time after that claim is filed in the conservation or liquidation
proceeding or in the receivership, and that during the pendency of that claim
the reinsurers may investigate that claim and interpose, at their own expense,
in the proceeding where that claim is to be adjudicated any defense (s) they may
deem available to the company or its liquidator, receiver, conservator or
statutory successor. This expense incurred by the reinsurers shall be
chargeable, subject to the approval of the court, against the company as part of
the expense conservation or liquidation to the extent of a pro rata share of the
benefit which may accrue to the company solely as a result of the defense
undertaken by the reinsurers.

      Where two or more reinsurers are involved in the same claim and a majority
in interest elect to interpose defense to that claim, the expense shall be
apportioned in accordance with the terms of the reinsurance agreement as though
that expense had been incurred by the company.

      This insolvency clause shall not preclude the reinsurer from asserting any
excuse of defense to payment of this reinsurance other than the excuses or
defenses of the insolvency of the company and the failure of the company's
liquidator, receiver, conservator or statutory successor to pay all or a portion
of the claim.

                                   ARTICLE XV
                            AMENDMENT OR CANCELLATION

      This Agreement may be amended by mutual agreement expressed in writing by
the parties hereto. If this Agreement is amended, the parties shall provide the
applicable regulatory agency thirty (30) days advance notice of such amendment.

      This Agreement shall remain in force until canceled by written notice
given by any party to the others, at least 60 days in advance of the effective
date of cancellation. In addition, written notice shall be provided by the
parties to the applicable regulatory agency thirty (30) days in advance of the
cancellation date. In the event of such cancellation, all rights and obligations
of the parties hereto with respect to policies which are then reinsured
hereunder

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shall continue to be governed by this Agreement, until such policies shall
expire or are renewed.

                                   ARTICLE XVI
                                  SOLE BENEFIT

      This Agreement is solely between and for the benefit of the parties
hereto, and the acceptance of reinsurance hereunder shall not create any right
or legal relation whatsoever between any third-party, such as, policyholder,
unaffiliated quota share reinsurer or excess of loss reinsurer.

                                  ARTICLE XVII
                                  GOVERNING LAW

      This Agreement is made in the State of Michigan and shall be construed
according to the laws of the State of Michigan.

                                  ARTICLE XVIII
                                 PERIODIC REVIEW

      This Agreement shall be reviewed by the parties annually and its terms
renegotiated as the parties may mutually agree.

                                   ARTICLE XIX
                   PRIOR INTERCOMPANY REINSURANCE AGREEMENTS

      All prior reinsurance agreements among the parties hereto are terminated
and superseded by this Agreement, effective as 12:01 a.m., January 1, 2005.

                                   ARTICLE XX
                                  JURISDICTION

      If a party fails to perform its obligations under the terms of this
Agreement, the party may be sued in a court of competent jurisdiction located in
either Michigan, Missouri, Florida or California to enforce an arbitration award
issued pursuant to Article XXIV.

                                   ARTICLE XXI
                                 ENTIRE CONTRACT

      This Agreement represents the entire agreement and understanding among the
parties. No other oral or written agreements or contracts relating to the risks
reinsured hereunder currently exist and/or contemplated between parties.

                                  ARTICLE XXII
                              ERRORS AND OMISSIONS

      The position of either party to this Agreement shall not be prejudiced by
any error or omission in reporting cessions or cancellations of premiums,
commissions, losses, loss adjustment expenses or other underwriting expenses
under this Agreement, or in claiming payments collectible hereunder for whatever
cause.

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                                  ARTICLE XXIII
                                ACCESS TO RECORDS

      Each party shall have the right, at any reasonable time, to examine all
records and documents in the possession of the other party which relate to
insurance business ceded under this Agreement.

                                  ARTICLE XXIV
                                   ARBITRATION

      Should a dispute arise between the parties relating to this Agreement, it
is hereby mutually agreed that, as a condition precedent to any right of action
hereunder, such difference shall be submitted to arbitration. Each party shall
name their arbitrator within twenty (20) days of receiving a notice of
appointment of arbitrator. The two (2) appointed arbitrators shall appoint the
umpire. If they cannot agree, the umpire shall be selected by the Circuit Court
for the County of Oakland. If either side fails to appoint its arbitrator, the
other party may appoint the other arbitrator. Thereafter, the two (2) appointed
arbitrators will appoint a neutral within ten (10) days of the appointment of
the second arbitrator. The decision of the arbiters shall be final and binding
upon the parties and enforceable in a court of competent jurisdiction. The
parties shall bear the expense of its arbitrator and jointly and equally bear
the expense of the umpire.

      In witness whereof, the parties hereto have caused this Agreement to be
executed this____ day of January, 2005.

STAR INSURANCE COMPANY

By: /s/ Gregory L. Wilde
    -----------------------
    Gregory L. Wilde
    President

AMERITRUST INSURANCE CORPORATION

By: /s/ Gregory L. Wilde
    ------------------------
    Gregory L. Wilde
    President

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SAVERS PROPERTY AND CASUALTY INSURANCE COMPANY

By: /s/ Gregory L. Wilde
    ------------------------
    Gregory L. Wilde
    President

WILLIAMSBURG NATIONAL INSURANCE COMPANY

By: /s/ Gregory L. Wilde
    -----------------------
    Gregory L. Wilde
    President

                                  Page 7 of 9
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                                   APPENDIX A
                       INTERCOMPANY REINSURANCE AGREEMENT

      Appendix A to the Inter-Company Reinsurance Agreement (the "Agreement") is
made and effective January 1, 2005 by and between Star Insurance Company (Star),
and Ameritrust Insurance Corporation, Savers Property and Casualty Insurance
Company and Williamsburg National Insurance Company, (hereinafter collectively
referred to as "Affiliated Companies").

1.    Effective January 1, 2005, the Respective Percentage(s) shall be as
      follows:

<TABLE>
<CAPTION>
                      Company                         Percentage Respective
                      -------                         ---------------------
<S>                                                   <C>
Star Insurance Company                                        51.5%

Ameritrust Insurance Corporation                              12.0%

Savers Property and Casualty Insurance Company                23.5%

Williamsburg National Insurance Company                       13.0%
</TABLE>

2.    Adjusted Determination of Participation

      Following the end of each Pooling Year, each party's Participation
      Percentage for that completed year shall be adjusted to be the percentage
      derived by dividing (a) each party's year-end statutory policyholder's
      surplus by (b) the corresponding year-end total statutory policyholder's
      surplus of all parties. For purposes of calculating statutory
      policyholder's surplus, surplus will be reduced for and will not include
      investment in subsidiaries. The adjusted participation percentage for the
      completed policy year shall be the initial Participation Percentage for
      the then current year. Upon determination and with the appropriate
      regulatory approval, the adjusted Participation Percentage shall be
      applied to the completed policy year and all required corresponding
      adjustment made between the parties.

3.    The initial participation percentages listed above may be adjusted from
      time to time by mutual agreement of the Parties. Any changes to the
      Parties' participation percentages will only be made after receipt of
      appropriate regulatory approval.

STAR INSURANCE COMPANY

By:______________________
    Gregory L. Wilde
    President

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AMERITRUST INSURANCE CORPORATION

By:______________________
    Gregory L. Wilde
    President

SAVERS PROPERTY AND CASUALTY INSURANCE COMPANY

By:______________________
    Gregory L. Wilde
    President

WILLIAMSBURG NATIONAL INSURANCE COMPANY

By:______________________
    Gregory L. Wilde
    President

                                  Page 9 of 9<PAGE>

                                                                    EXHIBIT 10.1

                          DURA AUTOMOTIVE SYSTEMS. INC.

                              CONSULTING AGREEMENT

THIS AGREEMENT is entered into as of April 8, 1998 by and among J. Richard Jones
("Consultant"), and Dura Automotive Systems, Inc., a Delaware corporation (the
"Company"). The Company and Consultant are sometimes collectively referred to
herein as the "Parties" and individually as a "Party".

Consultant has been an employee, officer, director and stockholder of Trident
Automotive, plc, registered in England No. 3437274 (the "Subsidiary"), and as
such, possesses special knowledge, abilities and experience regarding the
business of the Subsidiary. Dura Automotive Systems (UK) Ltd., a private United
Kingdom corporation ("Buyer") and certain sellers listed therein (the "Sellers")
are parties to a Stock Purchase Agreement, of even date herewith (the "Purchase
Agreement"), whereby Buyer shall purchase all of the outstanding ordinary shares
of $1 each (the "Dollar Shares") and ordinary shares of (pound)1 each
(collectively, the "Common Stock") of the Subsidiary from the Sellers (the
"Acquisition"). Capitalized terms used herein and not otherwise defined shall
have the meaning given to such terms in the Purchase Agreement.

Upon consummation of the Acquisition, and as a condition thereto, the Company
desires to obtain the services of Consultant to consult with and perform
services as an independent contractor for the Company and its subsidiaries with
respect to its businesses, and Consultant desires to provide services to the
Company and its subsidiaries upon the terms and conditions set forth in this
Agreement.

In consideration of the mutual covenants and agreements set forth herein,
subject to Section 18 below, the Parties agree as follows:

            1. Consulting Services. Upon the consummation of the Closing (the
"Closing Date"), the Company shall engage Consultant as an independent
contractor, and not as an employee, to render consulting services to the Company
as hereinafter provided, and Consultant hereby accepts such engagement, for a
period (the "Consulting Period") commencing on the Closing Date and terminating
on the earlier of (a) termination by Consultant (including death or disability),
(b) termination by the Company for Cause (as defined herein) or without Cause,
or (c) the fifth anniversary of the Closing Date. Consultant shall not have any
authority to bind or act on behalf of the Company or any of its subsidiaries.
During the Consulting Period, Consultant shall (i) render such consulting
services to the Company and its subsidiaries in connection with the Company's
business as Consultant and the President of the Company from time to time agree,
and (ii) serve on the Board of Directors of the Company (the "Board") as Vice
Chairman. Consultant shall not be required to perform such services more than 10
days per month for the first two years of this Agreement, and 5 days per month
thereafter, and such services shall not require Consultant's full time and
attention nor require Consultant to relocate or spend a significant amount of
time away from the metropolitan Detroit area.

            2. Release of the Company. Effective upon the Closing, Consultant
and the Company on behalf of itself and the Subsidiary each hereby irrevocably
terminates, and releases and discharges forever the Consultant and the Company,
the Subsidiary and their respective subsidiaries and each of their respective
directors, officers and employees from any and all contracts and agreements
entered into prior to the date hereof between and among such Consultant and the
Subsidiary and its subsidiaries, including, without limitation, that certain

<PAGE>

Employment Agreement dated December 12, 1997, by and between the Consultant and
the Subsidiary (the "Employment Agreement"), and all of the obligations, rights
and liabilities of the Subsidiary and Consultant thereunder (other than
Consultant's rights to indemnification under Section 8(d) of the Employment
Agreement).

            3. Compensation: Reimbursement.

            (a) In consideration of Consultant's consulting services set forth
      in Section 1 above, during the Consulting Period the Company or one of its
      subsidiaries shall pay Consultant $300,000 per annum (the "Consulting
      Payments") which will be payable in regular installments in accordance
      with the Company's general payroll practices.

            (b) During the Consulting Period, Consultant will be entitled to
      such other benefits approved by the Board, and shall include those
      benefits set forth in Appendix A attached hereto. The Company or one of
      its subsidiaries shall reimburse Consultant for all reasonable expenses
      incurred by him in the course of performing his duties under this
      Agreement which are consistent with the Company's policies in effect from
      time to time with respect to travel, entertainment and other business
      expenses, subject to the Company's requirements with respect to reporting
      and documentation of such expenses.

            (c) In consideration of the release set forth in Section 2 above,
      and the covenants set forth in Sections 6, and 7 below, the Company or one
      of its subsidiaries shall pay to Consultant $2,000,000 in cash by wire
      transfer on the Closing Date (the "Release and NonCompete Payment").

            4. Termination. In the event that the Consulting Period is
terminated prior to the fifth anniversary hereof by the Consultant (other than
for Good Reason) or by the Company for Cause, Consultant shall not be entitled
to receive the Consulting Payment or any fringe benefits for periods after the
termination of the Consulting Period, and upon any termination of the Consulting
Period as a result of a permanent disability, by the Company without Cause, or
by the Consultant for Good Reason, Consultant shall be entitled to receive the
Consulting Payment and fringe benefits until the fifth anniversary of the date
hereof. For purposes hereof, "Cause" shall mean (a) Consultant's breach of
Section 6 or 7 of this Agreement; (b) Consultant's material breach of any other
provision of this Agreement; (c) Consultant's failure to adhere to any written
Company or Subsidiary policy if Consultant has been given written notice and a
reasonable opportunity to comply with such policy or cure his failure to comply;
(d) the appropriation (or attempted appropriation) of a material business
opportunity of the Company or any of its subsidiaries, including attempting to
secure or securing any personal profit in connection with any transaction
entered into on behalf of the Company's or any of its subsidiaries' funds or
property; or ( e) the conviction of or the entering of a guilty plea of no
contest with respect to, a felony or the equivalent thereof. For purposes
hereof, "Good Reason" shall mean the Company's material breach of any provision
of this Agreement.

            5. Stock Options. Effective on the Closing Date, the Company hereby
agrees to grant to Consultant options to purchase 50,000 shares of the Company's
common stock (the "Company Options"), and the Company and Consultant shall
execute on the Closing Date a Dura Automotive Systems, Inc. Grant of
Nonqualified Stock Option letter agreement (the "Company Option Agreement") in
the form of Exhibit A hereto.

            6. Certain Agreements.
<PAGE>

            (a) Customers, Suppliers. The Consultant does not have, and at any
      time during the term of his employment under this Agreement shall not
      have, any employment with or any direct or indirect interest in (as owner,
      partner, shareholder, employee, director, officer, agent, consultant or
      otherwise) any customer of or supplier to the Company or its subsidiaries.
      Nothing in this Section 6( a) shall prohibit Consultant from acquiring or
      holding not more than three percent (3%) of any class of publicly traded
      securities of any business.

            (b) Certain Activities. The Consultant during the term of this
      Agreement shall (i) not give or agree to give, any gift or similar benefit
      of more than nominal value to any customer, supplier, or governmental
      employee or official or any other person who is or may be in a position to
      assist or hinder the company in connection with any proposed transaction,
      which gift or similar benefit, if not given or continued in the future,
      might adversely affect the business or prospects of the Company or its
      subsidiaries, (ii) use any corporate or other funds for unlawful
      contributions, payments, gifts or entertainment, (iii) make any unlawful
      expenditures relating to political activity to government officials or
      others, (iv) establish or maintain any unlawful or unrecorded funds or
      make any expenditures in violation of Section 30A of the Securities
      Exchange Act of 1934, or (v) accept or receive any unlawful contributions,
      payments, gifts, or expenditures.

            (c) Employee Inventions. Each of Consultant's Inventions will belong
      exclusively to the Company. The Consultant acknowledges that all of
      Consultant's Inventions are works made for hire and the property of the
      Company, including any copyrights, patents, or other intellectual property
      rights pertaining thereto. If it is determined that any such works are not
      works made for hire, Consultant hereby assigns to the Company all of
      Consultant's rights, title and interest, including all rights of
      copyright, patent, and other intellectual property rights, to or in such
      Inventions. The Consultant covenants that he will promptly:

                  (i) disclose to the Company in writing any Invention;

                  (ii) assign to the Company or to a party designated by the
            Company at the Company's request and without additional
            compensation, all of Consultant's right to the Invention for the
            United States and all foreign jurisdictions;

                  (iii) execute and deliver to the Company such applications,
            assignments, and other documents as the Company may request in order
            to apply for and obtain patents or other registrations with respect
            to any Invention in the United States and any foreign jurisdiction;

                  (iv) sign all other papers necessary to carry out the above
            obligations; and

                  (v) give testimony and render any other assistance in support
            of the Company's rights to any Invention.

            For purposes hereof, "Invention" means any idea, invention,
            technique, modification, process, or improvement (whether patentable
            or not), any industrial design (whether registerable or not), and
            any work of authorship (whether or not copyright protection may be
            obtained for it) created, conceived, or developed by Consultant,
            either solely or in conjunction with others, during the term of this
            Agreement, that relates in any way to, or is useful in any manner
            in, the business then being conducted or proposed to be conducted by
            the Company, and any such item created by Consultant, either solely
            or in conjunction with others, following termination of Consultant's
            association with the Company and its subsidiaries, that is based
            upon or uses Confidential Information (as defined below).

<PAGE>

            7. Certain Restrictions.

            (a) Confidentiality. The Consultant acknowledges that he had
      acquired and will acquire information respecting the business and affairs
      of the Company, its subsidiaries and affiliates that is non-public,
      confidential and/or proprietary in nature ("Confidential Information").
      Accordingly, Consultant shall keep confidential and not disclose to any
      person or use (except as required in the conduct of the business of the
      Company in the ordinary course and consistent with past practice) all such
      Confidential Information. Upon termination of the Consulting Period for
      any reason, Consultant shall deliver to the Company all documents, papers
      and records (in any form, including, but not limited to, electronic media)
      in his possession or subject to his control that (x) belong to the Company
      or (y) contain or reflect any information concerning the Company, its
      subsidiaries and affiliates. The provisions of this Section 7(a) shall not
      apply to any information which becomes a matter of public knowledge other
      than by breach of Consultant of this Section 7(a).

            (b) Competitive Activity. The Consultant acknowledges that the
      Company does business throughout the world, that the Company's products
      are manufactured, distributed, sold and used throughout the world and that
      the knowledge and relationships of Consultant with, among others,
      customers of and suppliers to the Company, are an important asset of the
      Company. Accordingly, Consultant agrees that during the Consultant Period
      under this Agreement, any period during which he is entitled to receive
      payments and benefits pursuant to Section 3 (provided that the Company has
      not breached its obligations to make any such payments which breach
      remains unremedied after reasonable notice), and for one (1) year after
      the end of such period without the prior consent of the Board, directly or
      indirectly, (i) except in the course of his consulting hereunder, engage
      or invest in, own, manage, operate, finance, control, or participate in
      the ownership, management, operation, financing, or control of, be
      employed by, associated with, or in any manner connect with, lend
      Consultant's name or any similar name to, lend Consultant's credit to or
      render services or advice to, any business whose products or activities
      compete in whole or in part with the products or activities of the Company
      anywhere in the world; (ii) whether for Consultant's own account or for
      the account of any other person, solicit business of the same or similar
      type being carried on by the Company, from any person known by Consultant
      to be a customer of the Company, whether or not Consultant had personal
      contact with such person during and by reason of Consultant's activities
      with the Company; (iii) whether for Consultant's own account or the
      account of any other person (A) solicit, employ, or otherwise engage as an
      employee, independent contractor, or otherwise any person who is or was an
      employee of the Company at any time during the term of this Agreement or
      in any manner induce or attempt to induce any employee of the Company of
      the Company to terminate his employment with the Company; or (B) interfere
      with the Company's relationship with any person, including any person who
      at any time during the term of this Agreement was an employee, contractor,
      suppler, or customer of the Company; or (iv) disparage the Company or any
      of its shareholders, directors, officers, employees, or agents. Nothing in
      this Section 7(b) shall prohibit Consultant from acquiring or holding not
      more than three percent (3%) of any class of publicly traded securities of
      any business.

            (c) Remedy for Breach and Modification. The Consultant acknowledges
      that the provisions of this Section 7 are reasonable and necessary for the
      protection of the Company and that the Company may be irrevocably damaged
      if these provisions are not specifically enforced. Accordingly, Consultant
      agrees that, in addition to any other relief or remedies available to the
      Company, the Company shall be entitled to seek and obtain an appropriate
      injunction or other equitable remedy for the purposes of restraining
      Consultant from any actual or threatened breach of or otherwise enforcing
      these provisions and no bond or security will be required in connection
      therewith unless the Company fails to demonstrate to a court having
      jurisdiction that it has a likelihood of success on the merits. If any
      provision of this Section 7 is deemed invalid or

<PAGE>

      unenforceable, such provision shall be deemed modified and limited to the
      extent necessary to make it valid and enforceable. In addition to and not
      in lieu of any other remedy that the Company may have under this Section 7
      (c) or otherwise, in the event of any breach of any provision of this
      Section 7 during the period during which Consultant is entitled to receive
      payments and benefits pursuant to Section 3, such period shall terminate
      as of the date of such breach and Consultant shall not thereafter be
      entitled to receive any salary or other payments or benefits under this
      Agreement.

            8. Tax Returns. Consultant shall file all tax returns and reports
required to be filed by him on the basis that Consultant is an independent
contractor, rather than an employee, as defined in Treasury Regulation
Section 31.3121(d)-I(c)(2).

            9. Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the Company and its affiliates, successors and assigns
and shall be binding upon and inure to the benefit of Consultant and his legal
representatives and assigns; provided that in no event shall Consultant's
obligations to perform future services for the Company be delegated or
transferred by Consultant without the prior written consent of the Company
(which consent may be withheld in its sole discretion). The Company may assign
or transfer its rights hereunder to any of its affiliates or to a successor
corporation in the event of merger, consolidation or transfer or sale of all or
substantially all of the assets of the Company.

            10. Modification or Waiver. No amendment, modification or waiver of
this Agreement shall be binding or effective for any purpose unless it is made
in a writing signed by the Party against whom enforcement of such amendment,
modification or waiver is sought. No course of dealing between the Parties to
this Agreement shall be deemed to affect or to modify, amend or discharge any
provision or term of this Agreement. No delay on the part of the Company or
Consultant in the exercise of any of their respective rights or remedies shall
operate as a waiver thereof, and no single or partial exercise by the Company or
Consultant of any such right or remedy shall preclude other or further exercises
thereof. A waiver of right or remedy on anyone occasion shall not be construed
as a bar to or waiver of any such right or remedy on any other occasion.

            11. Governing Law. All issues and questions concerning the
construction, validity, enforcement and interpretation of this Agreement and the
Exhibits and Schedules hereto shall be governed by, and construed in accordance
with, the laws of the State of Michigan, without giving effect to any choice of
law or conflict of law rules or provisions (whether of the State of Michigan or
any other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of Michigan. In furtherance of the foregoing,
the internal law of the State of Michigan shall control the interpretation and
construction of this Agreement (and all Schedules and Exhibits hereto), even
though under that jurisdiction's choice of law or conflict of law analysis, the
substantive law of some other jurisdiction would ordinarily apply.

            12. Severability. Whenever possible each provision and term of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision or term of this Agreement shall be held to
be prohibited by or invalid under such applicable law, then such provision or
term shall be ineffective only to the extent of such prohibition or invalidity,
without invalidating or affecting in any manner whatsoever the remainder of such
provision or term or the remaining provisions or terms of this Agreement;
provided that if a court having competent jurisdiction shall find that the
covenant contained in

<PAGE>

Section 7(a) hereof is not reasonable, such court shall have the power to reduce
the duration and/or geographic area and/or scope of such covenant, and the
covenant shall be enforceable in this reduced form.

            13. NoStrict Construction. The language used in this Agreement shall
be deemed to be the language chosen by the Parties hereto to express their
mutual intent, and no rule of strict construction shall be applied against any
Party.

            14. Consultant's Representations. This Agreement has been duly
executed and delivered by Consultant. This Agreement constitutes a valid and
binding obligation of Consultant, enforceable in accordance with its terms.
Consultant represents and warrants to the Company that (i) his execution,
delivery and performance of this Agreement does not and shall not conflict with,
or result in the breach of or violation of, any other agreement, instrument,
order, judgment or decree to which he is a party or by which he is bound, (ii)
he is not a party to or bound by any employment agreement, noncompete agreement
or confidentiality agreement with any other person or entity (other than the
Employment Agreement) and (iii) upon the execution and delivery of this
Agreement by the Company, this Agreement shall be the valid and binding
obligation of his, enforceable in accordance with its terms.

            15. Notice. Any notice required or permitted hereunder shall be
given in writing and shall be deemed effectively given upon personal delivery or
upon deposit in the United States Post Office mail, postage prepaid, addressed
to the other Party hereto at his or its address shown below:

                   If to the Company:

                   Dura Automotive Systems, Inc.
                   2791 Research Drive
                   Rochester Hills, Michigan 48309
                   Attention: David Bovee

                   with a copy to (which shall not constitute notice):

                   Hidden Creek Industries
                   4508 IDS Center
                   Minneapolis, Minnesota 55402
                   Attn: Carl E. Nelson
                   Fax: (612) 332-2012

                   and:

                   Kirkland & Ellis
                   200 East Randolph Drive
                   Chicago, Illinois 60601
                   Attn: Jeffrey Hammes, P.C. Fax:
                   (312) 861-2200

                   If to Consultant:

<PAGE>

                   J. Richard Jones
                   1515 Oak Hollow Drive
                   Milford, Michigan 48380
                   Fax: (248)684-0779

or at such other address as such Party may designate by ten days advance written
notice to the other Party.

            16. Captions. The captions used in this Agreement are for
convenience of reference only and do not constitute a part of this Agreement and
shall not be deemed to limit, characterize or in any way affect any provision of
this Agreement, and all provisions of this Agreement shall be enforced and
construed as if no caption had been used in this Agreement.

            17. Counterparts. This Agreement may be executed in counterparts,
anyone of which need not contain the signatures of more than one party, but all
such counterparts taken together shall constitute one and the same instrument.

            18. Effectiveness. Notwithstanding anything to the contrary
contained herein, this Agreement and the rights and obligations of the parties
hereto shall become effective only upon the consummation of the Closing (as
defined in the Purchase Agreement).

                                    * * * *

<PAGE>

      IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the
date first above written.

                                               DURA AUTOMOTIVE SYSTEMS, INC.

                                               By: /s/ Carl Nelson
                                                  ------------------------------

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

                                                   /s/ J. Richard Jones
                                                  ------------------------------
                                                       J. Richard Jones
<PAGE>

                                   APPENDIX A

(i)   Health care and similar benefits consistent with Consultant's current
      level of benefits received from the UK Subsidiary or the US Subsidiary;

(ii)  Annual automobile expense allowance of $8,300;

(iii) Annual country club membership of $9,000;

(iv)  Life Insurance providing a death benefit to Consultant's beneficiary of
      $900,000; and

(v)   Participation in a nonqualified arrangement to provide Consultant with a
      benefit under an "excess benefit plan" in the amount of $21,285 per annum
      for Consultant's and his surviving spouse's lifetime, with payments
      commencing as of the first day of the month in which Consultant reaches
      age 65.

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