Document:

Employment Agreement with John Neville

 

Exhibit 10.34

EMPLOYMENT AGREEMENT

      This Employment Agreement (“Agreement”) is made and entered into on this 18th day
of April, 2005, effective as of the date set forth in paragraph 2.1 below, and is by and between
Terremark Worldwide, Inc., a Delaware corporation (the “Company”), and John Neville (hereinafter
called the “Executive”).

RECITALS

      A. The Executive possesses knowledge and skills which the Company believes will be of
substantial benefit to its operations and success, and the Company desires to employ the Executive
on the terms and conditions set forth below, on its behalf or on behalf of one or more of its
subsidiaries or affiliates.

      B. The Executive is willing to make his services available to the Company and its subsidiaries
and affiliates on the terms and conditions set forth below.

AGREEMENT

      NOW, THEREFORE, in consideration of the premises and mutual covenants set forth herein, the
parties agree as follows:

      1. Employment.

            1.1
Employment and Term. The Company hereby agrees to employ the Executive, and the Executive
hereby agrees to serve the Company, on the terms and conditions set forth herein.

            1.2 Duties of Executive. During the Term of Employment under this Agreement, the Executive
shall serve as the Senior Vice President of Commercial Sales for the Company, shall diligently
perform all services as may be assigned to him by the Company (provided that, such services shall
not materially differ from the services currently provided by the Executive), and shall exercise
such power and authority as may from time to time be delegated to him
by the Company. The
Executive shall devote his full time and attention to the business and affairs of the Company,
render such services to the best of his ability, and use his best efforts to promote the interests
of the Company. It shall not be a violation of this Agreement for the Executive to (i) serve on
corporate, civic or charitable boards or committees, (ii) deliver lectures, fulfill speaking
engagements or teach at educational institutions, or (iii) manage personal investments, so long as
such activities do not significantly interfere with the performance of the Executive’s
responsibilities to the Company in accordance with this Agreement.

      2. Term.

            2.1
Commencement of Employment. The employment of the Executive under this Agreement
shall commence on April 18, 2005 (the “Commencement Date”).

            2.2
Termination of Employment. The period during which the Executive shall be employed by
the Company pursuant to the terms of this Agreement is sometimes referred to in this Agreement
as the

 

 

“Term
of Employment”. The Executive’s employment hereunder, and the Term of Employment, shall
continue until terminated upon notice by either the Company or the Executive in accordance with
Section 5, below.

      3. Compensation.

            3.1
Base Salary. The Executive shall receive a base salary at the annual
rate of $200,000 (the
“Base Salary”) during the Term of Employment, which such Base Salary shall be payable in
installments
consistent with the Company’s normal payroll schedule, subject to applicable withholding and
other taxes.
The Base Salary shall be reviewed, at least annually, for merit increases and may, by action
and in the sole
discretion of the Board, be increased at any time or from time to time.

            3.2 Bonuses. During the Term of Employment, the Executive shall be eligible to receive bonuses
in such amounts and at such times as the Board shall determine in its
sole discretion.

            3.3 Override. In addition to the Base Salary as additional compensation, Employee shall
receive
1/2 % of the gross revenue generated from the first year value of all sales of Company
services or other and
executed by the Company during the Term of Employment that are generated by Executive or
Executive’s
sales staff, the members of which are to be identified from time to time in Schedule A hereto
and made a
part hereof (the “Override”). The Company shall have no obligation to accept any sales orders
or contracts
or execute any sales orders or contracts whatsoever, all of which shall be in its sole
absolute discretion.

      4. Expense Reimbursement and Other Benefits.

            4.1
Reimbursement of Expenses. Upon the submission of proper substantiation by the Executive,
and subject to such rules and guidelines as the Company may from time to time adopt, the
Company shall
reimburse the Executive for all reasonable expenses actually paid or incurred by the Executive
during the
Term of Employment in the course of and pursuant to the business of the Company. The
Executive shall
account to the Company in writing for all expenses for which reimbursement is sought and shall
supply to
the Company copies of all relevant invoices, receipts or other evidence reasonably requested
by the
Company.

            4.2 Compensation/Benefit Programs. During the term of Employment, the Executive shall be
entitled to participate in all medical, dental, hospitalization, accidental death and
dismemberment, disability,
travel and life insurance plans, and any and all other plans as are presently and hereinafter
offered by the
Company to its executives, including savings, pension, profit-sharing and deferred
compensation plans,
subject to the general eligibility and participation provisions set forth in such plans.

            4.3 Working Facilities. During the Term of Employment, the Company shall furnish the
Executive with an office, administrative assistance and such other facilities and services
suitable to his
position and adequate for the performance of his duties hereunder.

            4.4
Stock Options. Effective on the Commencement Date, the Executive shall be granted options
(the “Initial Stock Options”) under (and subject to all terms and conditions of) the Company’s
2000 Stock Option Plan, as amended, to purchase 250,000 shares of the Company’s common stock (the
“Common Stock”) at an exercise price equal to the Fair Market Value (as defined in the Company’s
2000 Stock Option Plan) of the Common Stock on the date of grant, vesting over a period of three
years in annual installments of 33-1/3% per year commencing on the Commencement Date,
1/3 vesting at the end of each of the first, second and third years
after the Commencement Date.
In addition, during the Term of Employment, the Executive shall be eligible to be granted
additional options (the “Additional Stock Options” and, together with the Initial Stock Options,
the “Stock Options”) to purchase Common Stock under (and therefore subject

 

 

to all terms and conditions of) the Company’s 2000 Stock Option Plan, as amended, and any
successor plan thereto (the “Stock Option Plan”) and all rules of regulation of the Securities and
Exchange Commission applicable to stock option plans then in effect. The number of Additional Stock
Options and terms and conditions of the Additional Stock Options shall be determined by the
Committee appointed pursuant to the Stock Option Plan, or by the Board of Directors of the
Company, in its sole discretion and pursuant to the Stock Option Plan.

            4.5 Other Benefits. The Executive shall be entitled to three weeks of vacation each calendar
year during the Term of Employment, (subject to the general eligibility provisions set forth in
Company’s personnel policy), to be taken at such times as the Executive and the Company shall
mutually determine and provided that no vacation time shall interfere with the duties required to
be rendered by the Executive hereunder. Any vacation time not taken by Executive during any
calendar year may not be carried forward into any succeeding calendar year, except in accordance
with general Company policy in effect from time to time. The Executive shall receive such
additional benefits, if any, as the Board of the Company shall from time to time determine.

      5. Termination.

            5.1
Termination for Cause. The Company shall at all times have the right, upon written notice
to the Executive, to terminate the Term of Employment, for Cause. For purposes of this Agreement,
the term
“Cause” shall mean (i) an action or omission of the Executive which constitutes a willful and
material
breach of, or failure or refusal (other than by reason of his disability) to perform his
duties under, this
Agreement which is not cured within fifteen (15) days after receipt by the Executive of
written notice of
same, (ii) fraud, embezzlement, misappropriation of funds or breach of trust in connection
with his services
hereunder, (iii) conviction of a felony or any other crime which involves dishonesty or a
breach of trust, (iv)
gross negligence in connection with the performance of the Executive’s duties hereunder, which
is not cured
within fifteen (15) days after receipt by the Executive of
written notice of same, (v)
insubordination or other
refusal to adhere to Company policy or the instructions of a superior, or (vi) negligence by
commission or
omission that results in injury or damage to the Company.

Any termination for Cause shall be made in writing to the Executive, which notice shall set forth
in detail all acts or omissions upon which the Company is relying for
such termination. The
Executive shall have the right to address the Company’s Board of Directors regarding the acts set
forth in the notice of termination. Upon any termination pursuant to this Section 5.1, the Company
shall only be obligated to pay to the Executive his Base Salary to
the date of termination. The
Company shall have no further liability hereunder (other than for reimbursement for reasonable
business expenses incurred prior to the date of termination, subject, however, to the provisions
of Section 4.1).

            5.2
Disability. The Company shall at all times have the right, upon written notice to the
Executive, to terminate the Term of Employment, if the Executive shall become entitled to
benefits under
the Company’s group disability policy or any individual disability policy then in effect, or,
if the Executive
shall as the result of mental or physical incapacity, illness or disability, become unable to
perform his
obligations hereunder for a period of 90 days in any 12-month period. The Company shall have
sole
discretion based upon competent medical advice to determine whether the Executive continues to
be
disabled. Upon any termination pursuant to this Section 5.2, the Company shall (i) pay to the
Executive any
unpaid Base Salary through the effective date of termination specified in such notice, (ii)
pay to the
Executive a severance payment equal to one month of the Executive’s Base Salary at the time of
the
termination of the Executive’s employment with the Company. The Company shall have no further
liability
hereunder (other than for reimbursement for reasonable business
expenses incurred prior to the
date of
termination, subject, however to the provisions of Section 4.1).

 

 

            5.3
Death. Upon the death of the Executive during the Term of Employment, the Company shall
pay to the estate of the deceased Executive any unpaid Base Salary through the Executive’s
date of death. The Company shall have no further liability hereunder (other than for reimbursement for
reasonable
business expenses incurred prior to the date of the Executive’s death, subject, however to the
provisions of
Section 4.1).

            5.4
Termination Without Cause. At any time the Company shall have the right to terminate the
Term of Employment by written notice to the Executive. Upon any termination pursuant to this
Section 5.4
(that is not a termination under any of Sections 5.1, 5.2, 5.3,
5.5 or 5.6), the
Company shall (i) pay to the
Executive any unpaid Base Salary and Override through the effective date of termination
specified in such
notice, (ii) continue to provide the Executive with Base Salary and the benefits he/she
was receiving
under Sections 4.2 and 4.4 hereof (the “Benefits”) for three (3) months from the effective
date of
termination hereunder (the “Continuation Period”) in the manner and at such times as the Base
Salary and
Benefits otherwise would have been payable or provided to the
Executive. In the event that the
Company is
unable to provide the Executive with any Benefits required hereunder by reason of the
termination of the
Executive’s employment pursuant to this Section 5.4, then the Company shall pay the Executive
cash equal
to the value of the Benefit that otherwise would have accrued for the Executive’s benefit
under the plan, for
the period during which such Benefits could not be provided under the plans. The Company’s
good faith
determination of the amount that would have been contributed or the value of any Benefits that
would have
accrued under any plan shall be binding and conclusive on the
Executive. For this purpose, the
Company
may use as the value of any Benefit the cost to the Company of providing that Benefit to the
Executive.
Further, the vesting of the Executive’s Stock Options, if any, shall be subject to the terms
of the Stock
Option Plan. The Company shall have no further liability hereunder (other than for (x)
reimbursement for
reasonable business expenses incurred prior to the date of termination, subject, however, to
the provisions of
Section 4.1, and (y) payment of compensation for unused vacation days accumulated in
accordance with the Company’s then general policy).

            5.5
Termination by Executive.

                  (a) The Executive shall at all times have the right, upon sixty (60) days written notice to
the
Company, to terminate the Term of Employment.

                  (b) Upon
termination of the Term of Employment pursuant to this Section 5.5 (that is not a
termination under Section 5.6) by the Executive without Good Reason, the Company shall pay to
the
Executive any unpaid Base Salary through the effective date of termination specified in such
notice. The
Company shall have no further liability hereunder (other than for reimbursement for reasonable
business
expenses incurred prior to the date of termination, subject, however, to the provisions of
Section 4.1). At the
Company’s sole option, upon receipt of notice from the Executive pursuant to this Section, the
Company
may immediately terminate the Term of Employment, in which case, in addition to the covenants
set forth
above, the Company shall pay the Executive 60 days of Base
Salary.

                  (c) Upon termination of the Term of Employment pursuant to this Section 5.5 (that is not a
termination under Section 5.6) by the Executive for Good Reason, the Company shall pay to the
Executive
the same amounts that would have been payable by the Company to the Executive under Section
5.4 of this
Agreement if the Term of Employment had been terminated by the Company without Cause. The
Company
shall have no further liability hereunder.

                  (d) For purposes of this Agreement, “Good Reason” shall mean (i) the assignment to the
Executive of any duties or responsibilities inconsistent in any respect with the
Executive’s position or a
similar position in the Company or one of its subsidiaries, as contemplated by Section 1.2 of
this
Agreement, or any other action by the Company which results in a substantial and compelling
diminution in

 

 

such position, authority, duties or responsibilities, excluding for this purpose an isolated,
insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company
promptly after receipt of notice thereof given by the Executive; (ii) any failure by the Company to
comply with any of the provisions of Article 3 of this Agreement, other than an isolated,
insubstantial and inadvertent failure not occurring in bad faith and which is remedied by the
Company promptly after receipt of notice thereof given by the Executive; (iii) the Company’s
requiring the Executive to be based at any office or location outside of the area for which
Executive was originally hired to work except for travel reasonably required in the performance of
the Executive’s responsibilities. For purposes of this Section 5.5(d), any good faith determination
of “Good Reason” made by the Board shall be conclusive.

            5.6 Change in Control of the Company.

                  (a) In the event that (i) a Change in Control (as defined in paragraph (b) of this Section
5.6)
in the Company shall occur during the Term of Employment, and (ii) within one year after the
date of the
Change in Control, either (x) the Term of Employment is terminated by the Company without
Cause,
pursuant to Section 5.4 hereof or (y) the Executive terminates the Term of Employment for Good
Reason,
the Company shall (1) pay to the Executive any unpaid Base Salary and unpaid Override through
the
effective date of termination, (2) pay to the Executive as a single lump sum payment, within
30 days of the
termination of his employment hereunder, a lump sum payment equal to the sum of (x) two times
the sum of
Executive’s annual Base Salary and the value of the annual fringe benefits (based upon their
cost to the
Company) required to be provided to the Executive under Sections 4.2 and 4.4 hereof, for the
year
immediately preceding the year in which his employment terminates, plus (y) the value of the
portion of his
benefits under any savings, pension, profit sharing or deferred compensation plans that are
forfeited under
those plans by reason of the termination of his employment hereunder. The Company shall have
no further
liability hereunder (other than for (1) reimbursement for reasonable business expenses
incurred prior to the
date of termination, subject, however, to the provisions of Section 4.1, and (2) payment of
compensation for
unused vacation days that have accumulated during the calendar year in which such termination
occurs).

                  (b) For purposes of this Agreement, the term “Change in Control” shall mean:

                        (i) Approval by the shareholders of the Company of (x) a reorganization, merger,
consolidation or other form of corporate transaction or series of transactions, in
each case, with respect to which persons who were the shareholders of the Company immediately
prior to such reorganization, merger or consolidation or other transaction do not, immediately
thereafter, own more than 50% of the combined voting power entitled to vote generally in the
election of directors of the reorganized, merged or consolidation company’s then outstanding
voting securities, in substantially the same proportions as their ownership immediately prior to
such reorganization, merger, consolidation or other transaction, or (y) a liquidation or
dissolution of the Company or (z) the sale of all or substantially all of the assets of the
Company (unless such reorganization, merger, consolidation or other corporate transaction,
liquidation, dissolution or sale is subsequently abandoned);

                        (ii) the acquisition (other than the Company) by any person or “group”, within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act, of more than 50% of either the then
outstanding shares of the Company’s Common Stock or the combined voting power of the Company’s
then outstanding voting securities entitled to vote generally in the election of directors
(hereinafter referred to as the ownership of a “Controlling Interest”) excluding, for this
purpose, any acquisitions by (1) the Company or its Subsidiaries, (2) any person,
entity or “group” that as of the Commencement Date of this Agreement owns beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act) of a Controlling
Interest or (3) any employee benefit plan of the Company or its Subsidiaries.

 

 

            5.7
Resignation. Upon any notice or termination of employment pursuant to
this Article 5, the
Executive shall automatically and without further action be deemed to have resigned as an officer,
and if he or she was then serving as a director of the Company, as a director, and if required by
the Board, the Executive hereby agrees to immediately execute a resignation letter to the Board.

            5.8 Survival. The provisions of this Article 5 shall survive the termination of this
Agreement, as applicable.

      6. Restrictive
Covenants.

            6.1
Non-competition. At all times while the Executive is employed by the Company and for a
one year period after the termination of the Executive’s employment with the Company for any
reason (other than by the Company without Cause (as defined in Section 5.1 hereof) or by the
Executive for Good Reason (as defined in Section 5.5(d) hereof)), the Executive shall not,
directly or indirectly, engage in or have any interest in any sole proprietorship, partnership,
corporation or business or any other person or entity (whether as an employee, officer, director,
partner, agent, security holder, creditor, consultant or otherwise) that directly or indirectly
(or through any affiliated entity) engages in competition with the Company (based on the business
in which the Company was engaged or was actively planning on being engaged as of the date of
termination of the Employee’s employment and in the geographic areas in which the Company
operated or was actively planning on operating as of date of termination of the Employee’s
employment); provided that such provision shall not apply to the executive’s ownership of: Common
Stock of the Company or the acquisition by the Executive, solely as an investment, of securities
of any issuer that is registered under Section 12(b) or 12(g) of the Securities Exchange Act of
1934, as amended, and that are listed or admitted for trading on any United States national
securities exchange or that are quoted on the National Association of Securities Dealers
Automated Quotations System, or any similar system or automated dissemination of quotations of
securities prices in common use, so long as the Executive does not control, acquire a controlling
interest in or become a member of a group which exercises direct or indirect control or, more
than five percent of any class of capital stock of such corporation.

            6.2
Nondisclosure. The Executive shall not at any time divulge, communicate, use to the
detriment of the Company or for the benefit of any other person or persons, or misuse in any
way, any
Confidential Information (as hereinafter defined) pertaining to the
business of the Company.
Any
Confidential Information or data now or hereafter acquired by the Executive with respect to
the business of
the Company (which shall include, but not be limited to, information concerning the Company’s
financial
condition, prospects, technology, customers, suppliers, sources of leads and methods of doing
business)
shall be deemed a valuable, special and unique asset of the Company that is received by the
Executive in
confidence and as a fiduciary, and Executive shall remain a fiduciary to the Company with
respect to all of
such information. For purposes of this Agreement, “Confidential Information” means information
disclosed
to the Executive or known by the Executive as a consequence of or through his employment by
the
Company (including information conceived, originated, discovered or developed by the
Executive) prior to
or after the date hereof, and not generally known, about the Company
or its business. Confidential
Information shall include but not be limited to proprietary purchasing and sales methods and
techniques,
pricing methods and strategies, databases, software design and/or improvements, market
feasibility studies,
proposed or existing marketing techniques or plans, project files, future Company business
plans, design
systems, current or potential alliances, vendor relationships, products or services.
Notwithstanding the
foregoing, nothing herein shall be deemed to restrict the Executive from disclosing
Confidential Information
to the extent required by law.

            6.3 Nonsolicitation of Employees and Clients. At all times while the Executive is employed by
the Company and for a two (2) year period after the termination of the Executive’s employment
with the

 

 

Company for any reason, the Executive shall not, directly or indirectly, for himself or for any
other person, firm, corporation, partnership, association or other entity (a) employ or attempt to
employ or enter into any contractual arrangement with any employee or former employee of the
Company, unless such employee or former employee has not been employed by the Company for a period
in excess of six months, and/or (b) call on or solicit any of the actual or targeted prospective
clients of the Company on his or her own behalf or on behalf of any person or entity in connection
with any business competitive with the business of the Company, nor shall the Executive make known
the names and addresses of such clients or any information relating in any manner to the Company’s
trade or business relationships with such customers, other than in connection with the performance
of Executive’s duties under this Agreement.

            6.4 Ownership of Developments. All copyrights, patents, trade secrets, or other
intellectual
property rights associated with any ideas, concepts, techniques, inventions, processes, or
works of
authorship developed or created by Executive during the course of performing work for the
Company or its
clients (collectively, the “Work Product”) shall belong exclusively to the Company and shall,
to the extent
possible, be considered a work made by the Executive for hire for the Company within the
meaning of Title
17 of the United States Code. To the extent the Work Product may not be considered work made
by the
Executive for hire for the Company, the Executive agrees to assign, and automatically assign
at the time of
creation of the Work Product, without any requirement of further consideration, any right,
title, or interest
the Executive may have in such Work Product. Upon the request of the Company, the Executive
shall
further actions, including execution and delivery of instruments of conveyance, as may be
appropriate to
give full proper effect to such assignment.

            6.5 Books and Records. All books, records, disks, files, forms, documents, and accounts
relating
in any manner to the customers or clients of the Company, whether prepared by the Executive or
otherwise
coming into the Executive’s possession, shall be exclusive property of the Company and shall
be returned
immediately to the Company on termination of the Executive’s employment hereunder or on the
Company’s
request at any time.

            6.6 Definition of Company. Solely for purposes of this Article 6, the term “Company” also
shall include any existing or future subsidiaries of the Company that are operating during the
time periods described herein and any other entities that directly or indirectly, through one or
more intermediaries, control, are controlled by or are under common control with the Company
during the periods described herein.

            6.7
Acknowledgment by Executive. The Executive acknowledges and confirms that (a) the
restrictive covenants contained in this Article 6 are reasonably necessary to protect the
legitimate business interest of the Company, and (b) the restrictions contained in this Article 6
(including without limitation the length of the term of the provisions of this Article 6) are not
overbroad, overlong, or unfair and are not the result of overreaching, duress or coercion of any
kind. The Executive further acknowledges and confirms that this full, uninhibited and faithful
observance of each of the covenants contained in this Article 6 will not cause him any undue
hardship, financial or otherwise, and that enforcement of each of the covenants contained herein
will not impair his ability to obtain employment commensurate with his abilities and on terms
fully acceptable to him or otherwise to obtain income required for the comfortable support of him
and his family and the satisfaction of the needs of his creditors. The Executive acknowledges and
confirms that his special knowledge of the business of the Company is such as would cause the
Company serious injury or loss if he were to use such ability and knowledge to the benefit of a
competitor or were to compete with the Company in violation of the terms of this Article 6. The
Executive further acknowledges that the restrictions contained in this Article 6 are intended to
be, and shall be, for the benefit of and shall be enforceable by, the Company’s successors and
assigns.

 

 

            6.8 Reformation by Court. In the event that a court of competent jurisdiction shall determine
that any provision of this Article 6 is invalid or more restrictive than permitted under the
governing law of such jurisdiction, then only as to enforcement of this Article 6 within the
jurisdiction of such court, such provision shall be interpreted and enforced as if it provided for
the maximum restriction permitted under such governing law.

            6.9 Extension of Time. If the Executive shall be in violation of any provision of this
Article 6, then each time limitation set forth in this Article 6 shall be extended for a period of
time equal to the period of time during which such violation or
violations occur. If the Company
seeks injunctive relief from such violation in any court, then the covenants set forth in this
Article 6 shall be extended for a period of time equal to the pendency of such proceeding
including all appeals by the Executive.

            6.10
Survival. The provisions of this Article 6 shall survive the termination of this
Agreement, as applicable.

      7. Injunction. It is recognized and hereby acknowledged by the parties hereto that a breach by
the
Executive of any of the covenants contained in Article 6 of this Agreement will cause
irreparable harm and
damage to the Company, the monetary amount of which may be virtually
impossible to ascertain.
As a
result, the Executive recognizes and hereby acknowledges that the Company shall be entitled to
an
injunction from any court of competent jurisdiction enjoining and restraining any violation of
any or all of
the covenants contained in Article 6 of this Agreement by the Executive or any of his
affiliates, associates,
partners or agents, either directly or indirectly, and that such right to injunction shall be
cumulative and in
addition to whatever other remedies the Company may possess.

      8. Assignment. Neither party shall have the right to assign or delegate his rights or obligations
hereunder, or any portion thereof, to any other person.

      9. Governing
Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of Florida.

      10. Section 162(m) Limits. Notwithstanding any other provision of this Agreement to the
contrary, if
and to the extent that any remuneration payable by the Company to the Executive for any year
would exceed
the maximum amount of remuneration that the Company may deduct for that year under Section
162(m)
(“Section 162(m)”) of the Internal Revenue Code of 1986, as amended (the “Code”), payment of
the portion
of the remuneration for that year that would not be so deductible under Section 162(m) shall,
in the sole
discretion of the Board, be deferred and become payable at such time or times as the Board
determines that
it first would be deductible by the Company under Section 162(m), with interest at the
“short-term
applicable rate” as such term is defined in Section 1274(d) of
the Code. The limitation set
forth under this
Section 10 shall not apply with respect to any amounts payable to the Executive pursuant to
Article 5
hereof.

      11. Entire Agreement. This Agreement constitutes the entire agreement between the parties
hereto
with respect to the subject matter hereof and, upon its effectiveness, shall supersede all
prior agreements,
understandings and arrangements, both oral and written, between the Executive and the Company
(or any of
its affiliates) with respect to such subject matter. This Agreement may not be modified in any
way unless by
a written instrument signed by both the Company and the Executive.

      12. Notices: All notices required or permitted to be given hereunder shall be in writing and
shall be
personally delivered by courier, sent by registered or certified mail, return receipt
requested or sent by
confirmed facsimile transmission addressed as set forth herein. Notices personally delivered,
sent by
facsimile or sent by overnight courier shall be deemed given on the date of
delivery and notices mailed in

 

 

accordance
with the foregoing shall be deemed given upon the earlier of receipt by the addressee,
as evidenced by the return receipt thereof, or three (3) days
after deposit in the U.S. mail. Notice
shall be sent (i) if to the Company, addressed to Terremark
Worldwide, Inc., 2601 S. Bayshore Drive,
9th Floor, Miami, Florida 33133, Attn: Jose Segrera, Executive Vice-President and Chief Financial
Officer, and (ii) if to the Executive, to him address as reflected on the payroll records of the
Company, or to such other address as either party hereto may from time to time give notice of to
the other.

      13. Benefits; Binding Effect. This Agreement shall be for the benefit of and binding upon
the parties hereto and their respective heirs, personal representatives, legal representatives,
successors and, where applicable, assigns, including, without limitation, any successor to the
Company, whether by merger, consolidation, sale of stock, sale of
assets or otherwise.

      14. Severability. The invalidity of any one or more of the words, phrases, sentences, clauses
or sections contained in this Agreement shall not affect the
enforceability of the remaining
portions of this
Agreement or any part thereof, all of which are inserted conditionally on their being valid in
law, and, in the
event that any one or more of the words, phrases, sentences, clauses or sections
contained in this Agreement
shall be declared invalid, this Agreement shall be construed as if such invalid word or words,
phrase or
phrases, sentence or sentences, clause or clauses, or section or sections had not been
inserted. If such
invalidity is caused by length of time or size of area, or both, the otherwise invalid
provision will be
considered to be reduced to a period or area which would cure such invalidity.

      15. Waivers. The waiver by either party hereto of a breach or violation of any term or
provision of this
Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation.

      16. Damages. Nothing contained herein shall be construed to prevent the Company or the
Executive from seeking and recovering from the other damages sustained by either or both of them
as a result of its or his breach of any term or provision of this Agreement. In the event that
either party hereto brings suit for the collection of any damages resulting from, or the
injunction of any action constituting, a breach of any of the terms or provisions of this
Agreement, then the party found to be at fault shall pay all reasonable court costs and attorneys’
fees of the other.

      17. Section Headings. The section headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

      18. No Third Party Beneficiary. Nothing expressed or implied in this Agreement is intended,
or shall be construed, to confer upon or give any person other than the Company, the parties
hereto and their respective heirs, personal representatives, legal representatives, successors and
assigns, any rights or remedies under or by reason of this Agreement.

      19. Indemnification. The indemnification obligations of the Company to Executive shall be in
accordance with the Company’s standard indemnity agreement.

      20. Attorneys’ Fees. In the event of any litigation arising out of or in any way related to this
Agreement, the prevailing party shall be entitled to an award of reasonable attorneys’ fees
and costs incurred
in connection therewith.

 

 

      21. Controlling Agreement. This Agreement shall supercede, replace and be considered a
novation of any prior agreements, contracts, offer letters, oral promises and the like regarding
compensation, employment, benefits or any other subject addressed
herein.

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

	 	 	 	 	 
	 	COMPANY: 

TERREMARK WORLDWIDE, INC.

 	 
	 	By: 	/s/ Jose Segrera
 	 
	 	Name: 	Jose Segrera 	 
	 	Title: 	CFO 	 
	 

	 	 	 	 	 
	 	EXECUTIVE:

 	 
	 	By: 	/s/ John Neville
 	 
	 	Name: 	John NevilleEX-10.1 REVOLVING CREDIT AGREEMENT, JUNE 23, 2005

 

Exhibit 10.1

AMENDED AND RESTATED

AGENTED REVOLVING CREDIT AGREEMENT

     THIS AMENDED AND RESTATED AGENTED REVOLVING CREDIT AGREEMENT dated as of the 23rd
day of June, 2005, among COLONIAL AUTO FINANCE, INC., an Arkansas corporation (“Borrower”), BANK OF
ARKANSAS, N.A., GREAT SOUTHERN BANK, ARVEST BANK, FIRST STATE BANK, BANK OF OKLAHOMA, N.A., and
LIBERTY BANK OF ARKANSAS, and one or more additional lenders to be determined at a later date
(“Additional Lender”) (individually a “Bank” and collectively the “Banks”), BANK OF ARKANSAS, N.A.,
as agent for the Banks hereunder (in such capacity the “Agent”), and BANK OF OKLAHOMA, N.A., as the
paying agent (“Paying Agent”).

RECITALS

     A. Reference is made to the Agented Revolving Credit Agreement dated as of December 18, 2001
(as amended February 1, 2002, November 18, 2002, November 30, 2003, and April 28, 2004, the
“Original Credit Agreement”), by and among Borrowers, Banks, Agent and Paying Agent, pursuant to
which the Banks established a $39,500,000 Revolving Line of Credit in favor of Borrower, Texas
Car-Mart, Inc., a Texas corporation, and America’s Car Mart, Inc., an Arkansas corporation, for the
purpose of refinancing existing indebtedness and for working capital needs and general business
purposes.

     B. Effective the date hereof, the Banks intend to (i) delete America’s Car Mart, Inc. and
Texas Car-Mart, Inc. as Borrowers under the Original Credit Agreement, (ii) reduce the amount of
the Revolving Line of Credit from $39,500,000 to $34,500,000, and (iii) modify other terms and
provisions of the Original Credit Agreement.

     C. The parties hereto hereby intend to amend and restate the Original Credit Agreement in its
entirety and amend certain other Loan Documents.

     DEFINITIONS AND ACCOUNTING TERMS

     Section 1.01. Defined Terms. As used in this Agreement, the following terms have the
following meanings (terms defined in the singular to have the same meaning when used in the plural
and vice versa):

     “ACM” means America’s Car Mart, Inc., an Arkansas corporation.

     “ACM Sub-Debt” means the revolving line of credit provided to Borrower by ACM as of the
Closing Date, in an amount not to exceed $3,000,000.

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     “ACM Sub-Debt Subordination Agreement” means the Subordination Agreement dated of even date
herewith relating to the ACM Sub-Debt entered into by and among ACM, Borrower, Agent and the Banks.

     “ACM-Texas” means America’s Car Mart, Inc., a Texas corporation (formerly known as Crown
Group, Inc.).

     “ACM-Texas Sub-Debt” means the revolving line of credit provided to the Borrower by ACM-Texas,
in an amount not to exceed Ten Million and No/100 Dollars ($10,000,000).

     “ACM-Texas Sub-Debt Subordination Agreement” means the Subordination Agreement dated of even
date herewith relating to the ACM-Texas Sub-Debt entered into by and among ACM-Texas, Borrower,
Agent and the Banks.

     “Adjusted Tangible Assets” means all assets of the Borrower except: (a) deferred assets, other
than prepaid items and deferred taxes, (b) patents, copyrights, trademarks, trade names,
franchises, goodwill and other similar intangibles; (c) restricted investments; (d) unamortized
debt discount; (e) assets of the Borrower constituting intercompany accounts (provided, that
receivables from Affiliates shall not be deemed intercompany accounts for purposes of this
definition); (f) assets located and notes and receivables due from obligors domiciled outside the
United States of America, Puerto Rico, or Canada; and (g) fixed assets to the extent of any
write-up in the book value thereof resulting from a revaluation effective after the Closing Date.

     “Adjusted Tangible Net Worth” means, at any date, the remainder of (a) the net book value
(after deducting related depreciation, obsolescence, amortization, valuation, and other proper
reserves as determined in accordance with GAAP) at which the Adjusted Tangible Assets would be
shown on a balance sheet of the Borrower at such date prepared in accordance with GAAP,
minus (b) the amount at which the Borrower’s liabilities would be shown on such balance
sheet in accordance with GAAP.

     “Advance Rate” means fifty percent (50%) of Eligible Vehicle Contracts; provided, however,
that the Advance Rate shall be reduced by twice the percentage amount by which the Advance Rate
Adjustment Percent exceeds 33% (rounded to the nearest one-tenth percent), in each instance such
adjustments to be calculated as of the last day of each month and effective as of the first day of
the following month. For example, if the Advance Rate Adjustment Percent were 34% (1% over the
standard), the Advance Rate would be reduced by 2%.

     “Advance Rate Adjustment Percent” means, calculated as of the last day of each month, the sum
of the Past Due Percent, the Repossession Percent and the Net Charge-Off Percent rounded to the
lowest whole percent.

     “Affiliate” means any Person (1) which directly or indirectly controls, or is controlled by,
or is under common control with, the Borrower or a Subsidiary; (2) which directly or indirectly
beneficially owns or holds five percent (5%) or more of any class of voting stock of the Borrower
or any Subsidiary; or (3) five percent (5%) or more of the voting stock of which is directly or
indirectly

2

 

beneficially owned or held by the Borrower or a Subsidiary. The term “control”
(“Control”) means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the ownership of voting
securities, by contract or otherwise.

     “Agents Liens” means the Liens in the Collateral granted to the Agent, for the ratable benefit
of the Banks and Agent pursuant to this Agreement and the other Loan Documents.

     “Aggregate Revolver Outstanding” means, at any time the unpaid balance of the Revolving Credit
Loans.

     “Agreement” means this Agented Revolving Credit Agreement, as amended, supplemented, or
modified from time to time.

     “Average Net Balance” means, calculated as of the last day of each month, the Net Balances
owing under all Vehicle Contracts as of the last day of each of the prior four (4) months then
ending divided by Four (4).

     “Average Net Charge-Offs” means, calculated as of the last day of each month, the Net
Charge-Offs for the four-month period then ending divided by four (4).

     “Bank” means any of the Banks.

     “Banks” means any Initial Lender and each Person that shall become a Bank hereunder pursuant
to Section 10.02.

     “Blocked Account Agreement” means that certain Blocked Account Agreement described in
Section 5.15.

     “Borrowing Base” means, as of the date of determination, the remainder of (a) the amount
determined by multiplying the Advance Rate by the Net Eligible Contract Payments then outstanding,
minus (b) $5,000,000.

     “Borrowing Base Certificate” means each certificate from Borrower to Agent relating to the
Borrowing Base, substantially in the form of Exhibit “A” hereto.

     “Business Day” means any day other than a Saturday, Sunday, or other day on which commercial
banks in Arkansas are authorized or required to close under the laws of such State(s) and, if the
applicable day relates to LIBOR Loan, LIBOR Interest Period, or notice with respect to a LIBOR
Loan, a day on which dealings in Dollar deposits are also carried on in the London interbank market
and banks are open for business in London.

     “Capital Lease” means all leases which have been or should be capitalized on the books of the
lessee in accordance with GAAP.

3

 

     “Certificate of Title” means the certificate of title or other evidence of ownership of any
Vehicle issued by the appropriate Division of Motor Vehicles or its counterpart in the jurisdiction
in which the Contract Debtor resides.

     “Closing Date” means the date upon which this Agreement is executed and the conditions
precedent set forth in Section 3.01 are satisfied.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the
regulations and published interpretations thereof.

     “Collateral” means all property which is subject or is to be subject to the Lien granted by
the Security Agreement-Borrower, the Security Agreement-ACM, and the Security Agreement-TCM.

     “Commitment” means each Bank’s obligation to make Loans to the Borrower pursuant to Section
2.01 in the amount referred to therein.

     “Commonly Controlled Entity” means an entity, whether or not incorporated, which is under
common control with the Borrower within the meaning of the Code.

     “Contracts” means all of the Borrower’s, ACM’s and TCM’s now owned and hereafter acquired loan
agreements, accounts, installment sale contracts, instruments, notes, documents, chattel paper, and
all other forms of obligations owing to the Borrower, ACM, or TCM, including Vehicle Contracts and
any collateral for any of the foregoing, including all rights under any and all Security Documents
and merchandise returned to or repossessed by the Borrower, ACM, or TCM.

     “Contract Debtor” means each Person who is obligated to the Borrower, ACM, or TCM to perform
any duty under or to make any payment pursuant to the terms of a Vehicle Contract.

     “Credit Guidelines” means ACM’s or TCM’s guidelines (which have previously been reviewed and
approved by the Agent) which state the credit criteria used by ACM and TCM in determining the
creditworthiness of Contract Debtors.

     “Debt” means all liabilities, obligations, and indebtedness of the Borrower to any Person, of
any kind or nature, now or hereafter owing, arising, due or payable, howsoever evidenced, created,
incurred, acquired, or owing, whether primary, secondary, direct or indirect, contingent, fixed, or
otherwise, and including, without in any way limiting the generality of the foregoing: (i) the
Borrower’s liabilities and obligations to trade creditors; (ii) all Obligations; (iii) all
obligations and liabilities to any Person secured by a Lien on the Borrower’s Property, even though
the Borrower shall not have assumed or become liable for the payment thereof; provided,
however, that all such obligations and liabilities which are limited in recourse to such
Property shall be included in Debt only to the extent of the book value of such property as would
be shown on a balance sheet of the Borrower prepared in accordance with GAAP; (iv) all obligations
and liabilities created or arising under any lease or conditional sale or other title retention
agreement with respect to Property used or acquired by the Borrower, even if the rights and
remedies of the lessor, seller, or lender thereunder are limited to repossession of such Property;
provided, however, that all such obligations and

4

 

liabilities which are limited in
recourse to such Property shall be included in Debt only to the extent of the book value of such
property as would be shown on a balance sheet of the Borrower prepared in accordance with GAAP; (v)
all accrued pension fund and other employee benefit plan obligations and liabilities; (vi) all
obligations and liabilities under Guaranties; (vii) Subordinated Debt; (viii) the ACM-Texas
Sub-Debt; (ix) the ACM Sub-Debt; and (x) deferred tax liabilities.

     “Debt For Borrowed Money” means, as to any Person, Debt for borrowed money or as evidenced by
notes, bonds, debentures or similar evidences of any such Debt of such Person, the deferred and
unpaid purchase price of any property or business (other than trade accounts payable incurred in
the ordinary course of business and constituting current liabilities) and all obligations under
Capital Leases.

     “Default” means any of the events specified in Section 8.01, whether or not any
requirement for the giving of notice, the lapse of time, or both, or any other condition, has been
satisfied.

     “Distribution” means, in respect of any corporation: (a) the payment or making of any dividend
or other distribution of Property in respect of capital stock (or any options or warrants for such
stock) of such corporation, other than distributions in capital stock (or any options or warrants
for such stock); or (b) the redemption or other acquisition by such corporation of any capital
stock (or any options or warrants for such stock) of such corporation unless accomplished through
the issuance of capital stock or as permitted pursuant to Section 6.06.

     “Dollars” and the sign “$” mean lawful money of the United States of America.

     “EBITDA” shall be defined as net income in accordance with GAAP, less the decrease in loan
loss reserves, plus the sum of interest expense, depreciation, amortization, income taxes, and
other non-cash expenses (including increases to loan loss reserves) less any capital distributions.

     “Eligible Vehicle Contracts” means those Vehicle Contracts which the Agent, in its reasonable
discretion, deems eligible (which shall be presumed unless the Agent expressly states otherwise
from time to time) and which, without limiting the Agent’s discretionary rights, satisfy as of the
date of determination all of the following requirements as determined by the Agent in its
reasonable discretion:

     (a) the Vehicle Contract strictly complies with all of the Borrower’s, ACM’s, or TCM’s, as
applicable, warranties and representations contained therein;

     (b) (i) for any Vehicle Contract that requires weekly payments from the Contract Debtor, no
more than four (4) payments may be contractually delinquent, and (ii) for any other Vehicle
Contract, no payment due under the Vehicle Contract is more than the lesser of thirty (30) days or
four (4) weeks contractually delinquent;

     (c) except as provided in clause (b) of this definition, neither the Borrower, ACM or TCM, as
applicable, nor the Contract Debtor is in default under the terms of the Vehicle Contract.

5

 

     (d) the Borrower, ACM, or TCM, as applicable, has not granted to the Contract Debtor any
extension of time for the payment of any sum due under the Vehicle Contract except pursuant to a
Contract which has been modified in a way that Agent, in its reasonable discretion, deems
acceptable (which shall be presumed unless the Agent expressly states otherwise from time to time);

     (e) the Vehicle Contract is not subject to any asserted defense, counterclaim, offset,
discount, or allowance;

     (f) the terms of the Vehicle Contract and all related documents and instruments comply in all
respects with all requirements of law;

     (g) the Contract Debtor is not an Affiliate (but may be an employee; provided that employee
debt shall not exceed one half of one percent (.5%) of Net Eligible Contract Payments ) of the
Borrower, ACM, or TCM;

     (h) the creditworthiness of the Contract Debtor is acceptable to the Agent (which shall be
presumed unless the Agent expressly states otherwise from time to time) and the Vehicle Contract
and Contract Debtor conform to the Credit Guidelines;

     (i) the Contract Debtor is not subject to a bankruptcy or insolvency proceeding under Federal
law or any similar proceeding under state law;

     (j) the Contract Debtor is a resident of the continental United States;

     (k) the first scheduled payment pursuant to the terms of the Vehicle Contract is, or was, due
within forty-five (45) days following the execution of the Vehicle Contract and all other payments
are scheduled to be made in substantially equal weekly, bi-weekly, monthly, or semi-monthly
installments in order to ratably amortize the Vehicle Contract over its scheduled term;

     (l) the original term of the Vehicle Contract is not more than thirty-six (36) months;

     (m) repayment of the Vehicle Contract is secured by a first priority, perfected interest in
subject Vehicle, and Borrower, ACM, or TCM has evidence of such perfected lien on the Borrower’s,
ACM’s, or TCM’s premises available to the Agent for inspection in the form of either (i) the most
current Certificate of Title reflecting the Borrower, ACM, or TCM as the lien holder or owner, or
(ii) documentation from the appropriate Governmental Authority reflecting Borrower’s, ACM’s, or
TCM’s lien; or within forty-five (45) calendar days of executing a Vehicle Contract, the Borrower,
ACM, or TCM shall have in its possession evidence from the appropriate Governmental Authority of
perfection by that Government authority of a first priority lien in favor of the Borrower, ACM, or
TCM on the Vehicle that is the subject of the Vehicle Contract, and evidence of such perfected lien
shall be on the Borrower’s, ACM’s, or TCM’s premises available to the Agent for inspection in the
form of either (i) a Certificate of Title reflecting the Borrower, ACM, or TCM as

6

 

the lien holder,
or owner or (ii) documentation from the appropriate Government Authority reflecting Borrower’s,
ACM’s, or TCM’s lien.

     (n) to the extent that the balance of the Vehicle Contract includes sums representing the
financing of a service contract, such service contract shall be in compliance with all applicable
consumer credit laws, including any and all laws relating thereto;

     (o) the Vehicle Contract .is not an Unacceptable Modified Contract.

     (p) the Vehicle Contract is originated in the ordinary course of the Borrower’s, ACM’s, or
TCM’s business; and

     (q) the Vehicle which secures the Vehicle Contract is not being held by the Borrower, ACM, or
TCM for more than thirty (30) days following repossession.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the regulations and published interpretations thereof.

     “Event of Default” means any of the events specified in Section 8.01, provided that
any requirement for the giving of notice, the lapse of time, or both, or any other condition, has
been satisfied.

     “Fixed Charges” shall be defined as the sum of interest expense and income taxes plus
scheduled principal payments on Debt for Borrowed Money (other than the Revolving Credit Loans and
outstanding loans under the ACM-Texas Sub-Debt or ACM Sub-Debt) plus Capital Expenditures
(except those financed with the proceeds of any Debt for Borrowed Money as permitted hereunder)
plus Distributions other than those to ACM-Texas and ACM, in each instance with respect to
the applicable period.

     “Funded Debt” means all outstanding Debt For Borrowed Money (not including the ACM-Texas
Sub-Debt and the ACM Sub-Debt).

     “GAAP” means generally accepted accounting principles in the United States.

     “Gross Contract Payments” means, as of the date of determination, (i) with respect to an
interest bearing Vehicle Contract the outstanding balance thereof including all accrued but unpaid
interest, fees, and other charges owing by the Contract Debtor and (ii) with respect to a
precomputed Vehicle Contract the outstanding balance thereof including all unearned interest, fees,
and charges owing by the Contract Debtor.

     “Guarantor” means ACM-Texas.

     “Guaranty” means the Guaranty in substantially the form of Exhibit “B” to be delivered
by the Guarantor under the terms of this Agreement.

7

 

     “Interest Period” means, with respect to any LIBOR Loan, the period commencing on the date
such Loan is made and ending, as the Borrower may select, pursuant to Section 2.04, on the
numerically corresponding day in the first, second, third, sixth, ninth, or twelfth calendar month
thereafter, except that each such Interest Period that commences on the last Business Day of a
calendar month (or on any day for which there is no numerically corresponding day in the
appropriate subsequent calendar month) shall end on the last Business Day of the appropriate
subsequent calendar month; provided that all of the foregoing provisions relating to Interest
Periods are subject to the following:

     (a) No Interest Period may extend beyond the Termination Date; and

     (b) If an Interest Period would end on a day that is not a Business Day, such Interest
Period shall be extended to the next Business Day unless such Business Day would fall in the
next calendar month, in which event such Interest Period shall end on the immediately
preceding Business Day.

     “Lending Office” means, with respect to any Bank, for each type of Loan, the Lending Office of
such Bank (or of an affiliate of such Bank) designated for such type of Loan on the signature pages
hereof or such other office of such Bank (or of an affiliate of such Bank) as that Bank may from
time to time specify to the Borrower and the Agent as the office at which its Loans of such type
are to be made and maintained.

     “LIBOR Loan” means any Loan when and to the extent that the interest rate therefor is
determined by reference to the LIBOR Rate.

     “LIBOR Rate” means a fluctuating interest rate per annum (rounded upward, if necessary, to the
nearest 1/100 of 1%) as in effect from time to time, which interest rate per annum shall at all
times be equal to the London Interbank Offered Rate per annum set forth in the “Money Rates”
section of the Wall Street Journal on the day the Interest Rate Election Notice is received by
Agent for thirty (30) day interest periods, as elected by Borrower in the Interest Rate Election
Notice. If Borrower fails to make a subsequent election within two (2) Business Days prior to the
end of an applicable period, the rate shall automatically revert to the Prime Rate. If the
information is unavailable from such service, the rate shall be determined by the Agent from
information supplied to Agent by a nationally recognized reporting service for similar information
acceptable to Agent. Agent shall promptly confirm to Borrower in writing the LIBOR Rate.

     “Lien” means any mortgage, deed of trust, pledge, security interest, hypothecation,
assignment, deposit arrangement, encumbrance, lien (statutory or other), of preference, priority,
or other security agreement or preferential arrangement, charge, or encumbrance of any kind or
nature whatsoever (including, without limitation, any conditional sale or other title retention
agreement, any financing lease having substantially the same economic effect as any of the
foregoing, and the filing of any financing statement under the Uniform Commercial Code or
comparable law of any jurisdiction to evidence any of the foregoing).

     “Loan” means a Revolving Credit Loan.

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     “Loan Document(s)” means this Agreement, the Note, the Security Agreement-Borrower, the
Security Agreement-ACM, the Security Agreement-TCM, and the Guaranty.

     “Majority Banks” means, at any time of determination, the Banks holding at least sixty-six
percent (66%) of the Aggregate Revolver Outstanding.

     “Material Adverse Effect” means a material adverse change in, or a material adverse effect
upon, the operations, business, properties, condition (financial or otherwise) or prospects of the
Borrower or the Collateral.

     “Multiemployer Plan” means a Plan described in Section 4001(a)(3) of ERISA.

     “Net Balance” means, as of the date of determination, the Gross Contract Payments of a Vehicle
Contract less all unearned interest, fees, and charges (but including any service contract amount
included therein) owing by the Contract Debtor.

     “Net Charge-Offs” is defined for any period as the aggregate amount of all unpaid principal
balances (including any service contract amounts included therein) due under Vehicle Contracts
which have been charged off by the Borrower, ACM, or TCM during such period, including the
principal balances due under all Vehicle Contracts where the Vehicle has been repossessed by
Borrower, ACM, or TCM during such period reduced by the amount of the wholesale value of each
repossessed vehicle.

     “Net Charge-Off Percent” calculated as of the last day of each month, is defined as the
Average Net Charge-Offs divided by the Average Net Balance (vehicle notes) multiplied by twelve
(12). For example, if the Average Net Charge-Offs were $1,200,000, and the Average Net Balance was
$67,000,000 the Net Charge-Off Percent would be 21.49% ($1,200,000 ) $67,000,000 x 12).

     “Net Eligible Contract Payments” means, as of the date of determination, the remainder of (a)
the Gross Contract Payments (including any service contract amounts included therein) owing under
all Eligible Vehicle Contracts, minus (b) the aggregate amount, to the extent included
within the definition of Gross Contract Payments, of all unearned interest, fees, and charges
applicable to such Eligible Vehicle Contracts.

     “Note(s)” means the promissory notes described in Section 2.08 hereof.

     “Obligations” means all present and future loans, advances, liabilities, obligations,
covenants, duties, and debts owing by the Borrower to the Agent and/or any Bank arising under or
pursuant to this Agreement or any of the other Loan Documents, whether or not evidenced by any
note, or other instrument or document, whether arising from an extension of credit, opening of a
letter of credit, acceptance, loan, guaranty, indemnification or otherwise, whether direct or
indirect (including, without limitation, those acquired by assignment from others, and any
participation by the Agent and/or any Bank in the Borrower’s debts owing to others), absolute or
contingent, due or to become due, primary or secondary, as principal or guarantor, and including,
without limitation, all principal,

9

 

interest, charges, expenses, fees, attorneys’ fees, filing fees
and any other sums chargeable to the Borrower hereunder or under any of the other Loan Documents.

     “PBGC” means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all
of its functions under ERISA.

     “Past Due Percent” is defined as the percent, calculated as of the last day of each month for
the four (4) month period then ending, equal to (a) the Net Balances owing under all Vehicle
Contracts (excluding Vehicle Contracts charged-off) 30 days or more past due calculated as of the
last day of each month for the four (4) month period then ending or where the Contract Debtor is
subject to a bankruptcy or insolvency proceeding under Federal law or any similar proceeding under
state law, divided by  (b) the Net Balances owing under all Vehicle Contracts
(excluding Vehicle Contracts charged-off) calculated as of the last day of each month for the four
(4) month period then ending. For example, if, as of the last day of the previous four (4) months,
Net Balances were $71,000,000, $73,000,000, $75,000,000 and $75,500,000 and on the same date the
amount of Net Balances more than 30 days past due was $4,000,000, $4,000,000, $5,000,000 and
$5,000,000, the Past Due Percent would be 6.11% ($18,000,000/$294,500,000).

     “Payment Account” means each bank account established pursuant to Section 5.15, to
which the funds of the Borrower (including, without limitation, collections of payments relating to
Vehicle Contracts and other Collateral) are deposited or credited, and which is maintained in the
name of the Borrower on terms acceptable to the Agent.

     “Person” means an individual, partnership, corporation, business trust, joint stock company,
trust, unincorporated association, joint venture, governmental authority, or other entity of
whatever nature.

     “Plan” means any pension plan which is covered by Title IV of ERISA and in respect of which
the Borrower or a Commonly Controlled Entity is an “employer” as defined in Section 3(5) of ERISA.

     “Prime Loan” means any Loan when and to the extent that the interest rate therefor is
determined by reference to the Prime Rate.

     “Prime Rate” means a fluctuating interest rate per annum as in effect from time to time, which
interest rate per annum shall at all times be equal to the rate of interest announced publicly from
time to time (whether or not charges in each instance), by J. P. Morgan Chase & Co. (“Rate Bank”),
as its base rate or general reference rate. Each change in the Prime Rate (or any component
thereof) shall become effective hereunder without notice to Maker (which notice is hereby expressly
waived by Maker), on the effective date of each such change. Should the Rate Bank abolish or
abandon the practice of announcing or publishing a Prime Rate, then the Prime Rate used during the
remaining term of this Note shall be that interest rate or other general reference rate then in
effect at the Rate Bank which, from time to time, in the reasonable judgment of Agent, most
effectively approximates the initial definition of the “Prime Rate.” Borrower acknowledges that
Bank may, from time to time, extend credit to other borrowers at rates of interest varying from,
and having no

10

 

relationship to, the Prime Rate. The rate of interest payable upon the indebtedness
evidenced by the Note shall not, however, at any time exceed maximum rate of interest permitted
under the laws of the State of Arkansas for loans of the type and character evidenced by the Note.

     “Principal Office” means the Agent’s office at P.O. Box 1407, Fayetteville, Arkansas
72702-1404.

     “Prohibited Transaction” means any transaction set forth in Section 406 of ERISA or Section
4975 of the Code.

     “Pro Rata Share” means the proportion which each Bank’s commitment bears to the total amount
of all the Banks’ commitments at the time of determination thereof.

     “Regulation D” means Regulation D of the Board of Governors of the Federal Reserve System as
amended or supplemented from time to time.

     “Reportable Event” means any of the events set forth in Section 4043 of ERISA.

     “Repossession Percent” is defined as the percent, as calculated as of the last day of each
month, equal to (a) the repossession value of all Vehicles which the Borrower, ACM, or TCM has
repossessed and which, as of the last day of the four (4) month period then ending, was reflected
as assets on the Borrower’s, ACM’s, or TCM’s books divided by (b) the Net Balance owing
under all Vehicle Contracts (excluding Vehicle Contracts charged-off) outstanding as of the last
day of each of those four (4) months. For example, if 10 Vehicles having a total repossession
value of $200,000 had at the end of each month been repossessed by Borrower and were reflected as
assets on the books of Borrower at the end of each of those four (4) months and the Net Balance
were $64,000,000, $65,000,000, $66,000,000 and $67,000,000 at the end of such months, the
Repossession Percent would be 0.31% ($800,000/$262,000,000.)

     “Revolving Credit Commitment” or “Commitment” means, with respect to any Bank, the amount
opposite such Bank’s name on its signature page hereto.

     “Revolving Credit Loans” means an advance of funds under Section 2.01.

     “Security Agreement-Borrower” means the Security Agreement of Borrower in substantially the
form of Exhibit “C-1”, to be delivered by the Borrower under the terms of this Agreement.

     “Security Agreement-ACM” means the Security Agreement of ACM in substantially the form of
Exhibit “C-2”, to be delivered by ACM under the terms of this Agreement.

     “Security Agreement-TCM” means the Security Agreement of TCM in substantially the form of
Exhibit “C-3” to be delivered by TCM under the terms of this Agreement.

11

 

     “Security Documents” means all security agreements, chattel mortgages, deeds of trust,
mortgages, or other security instruments, guaranties, sureties, and agreements of every type and
nature (including Certificates of Title) securing the obligations of Contract Debtors under
Contracts.

     “Subordinated Debt” means all debt of the Borrower which (a) is subordinated to the
Obligations pursuant to a written subordination agreement the terms of which are satisfactory to
the Agent in its sole and absolute discretion and (b) has a then-remaining term to maturity in
excess of twelve (12) months. Subordinated Debt includes the ACM-Texas Sub-Debt and the ACM
Sub-Debt.

     “Subsidiary” means, as to the Borrower, a corporation of which shares of stock having ordinary
voting power (other than stock having such power only by reason of the happening of a contingency)
to elect a majority of the board of directors or other managers of such corporation are at the time
owned, or the management of which is otherwise controlled, directly, or indirectly through one or
more intermediaries, or both, by the Borrower.

     “TCM” means Texas Car-Mart, Inc., a Texas corporation.

     “Termination Date” means April 30, 2006.

     “Total Facility” means thirty-four million and five hundred thousand dollars and NO/100
($34,500,000).

     “Unacceptable Modified Contract” means a Contract which has been modified in a way that the
Agent in its reasonable discretion deems unacceptable and accordingly ineligible. Without
intending to limit the Agent’s discretion, any Contract which was more than thirty (30) days
contractually delinquent but was subsequently modified so as to eliminate the delinquency shall be
considered as unacceptable. Notwithstanding the previous sentence, in the event four consecutive
full payments are made on any Unacceptable Modified Contract and such Unacceptable Modified
Contract is not then in any respect delinquent, such Unacceptable Modified Contract shall at such
time no longer be considered as an Unacceptable Modified Contract. After the Closing Date, Agent in
its reasonable discretion may limit the number of times any Unacceptable Modified Contract becomes
acceptable to twice, by giving notice to Borrower. Upon such notice, no contract which was at one
time unacceptable shall thereafter be reclassified as acceptable more than twice during the term on
such Contract. Additionally, the Borrower may change the monthly due date by not more than fifteen
(15) days with respect to a Contract to coincide with a Contract Debtor’s pay date and such
adjustment to the Contract shall not by itself render the Contract as unacceptable.

     “Unused Revolving Credit Commitment” means, with respect to any Bank at any time of
determination, (a) such Bank’s Revolving Credit Commitment at such time minus (b) the sum
of the aggregate principal amount of all Revolving Credit Loans made by such Bank and outstanding
at such time.

     “Vehicle” means any new or used, two-axled, automobile or light-duty truck, together with all
accessions, parts and equipment sold or financed in connection therewith.

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     “Vehicle Contract” means a Contract which arises from an installment sale of a Vehicle.

     Section 1.02. Accounting Terms. All accounting terms not specifically defined herein shall be
construed in accordance with GAAP consistent with those applied in the preparation of the financial
statements referred to in Section 4.04, and all financial data submitted pursuant to this Agreement
shall be prepared in accordance with such principles.

Article 2

AMOUNT AND TERMS OF THE LOANS

     Section 2.01. Revolving Credit. Each Bank severally agrees, on the terms and conditions
hereinafter set forth, to make the Revolving Credit Loans to the Borrower from time to time during
the period from the date of this Agreement up to but not including the Termination Date in an
aggregate principal amount not to exceed at any time outstanding the aggregate Revolving Credit
Commitment provided, that the aggregate outstanding principal amount of advances at any time
outstanding shall not exceed the lesser of: (i) the aggregate Revolving Credit Commitment; or
(ii) the Borrowing Base. Such Borrowing Base shall be computed on a monthly basis, and Borrower
agrees to provide Agent, on or before the 15th of each month with regard to the immediately
preceding month (or more frequently as reasonably required by Agent from time to time), all
information requested in connection therewith, including without limitation the Borrowing Base
Certificate. In the event that the Borrowing Base is less than the Aggregate Revolver Outstanding,
the Borrower shall immediately notify Agent of such situation and shall, within five (5) Business
Days of the imbalance, either (i) reduce the amount of the outstanding balances to bring such
amounts within the formulas prescribed, or (ii) provide additional Eligible Vehicle Contracts,
without any additional advance being made by any Bank with respect thereto, necessary to comply
with the formulas required herein. Each Loan made in respect of the Revolving Credit Loans shall
be made by each Bank in its Pro Rata Share. Within the limits of the Commitment, the Borrower may
borrow, repay and reborrow under this Section 2.01. On such terms and conditions, the
Loans may be outstanding as Prime Loans or LIBOR Loans. Each type of Loan shall be made and
maintained at such Bank’s Lending Office for such type of Loan. The failure of any Bank to make
any requested Revolving Credit Loan to be made by it on the date specified for such Loan shall not
relieve any other Bank of its obligation (if any) to make such Loan on such date, but no Bank shall
be responsible for the failure of any other Bank to make such Loans to be made by such other Bank.

     Section 2.02. Notice and Manner of Borrowing. The Borrower shall give the Agent irrevocable
written notice of any Revolving Credit Loans under this Agreement, not later than 12:00 noon
(central time) on the requested funding date before each Revolving Credit Loan, specifying: (1)
the date of such Loan; (2) the amount of such Loan; (3) the type of Loan; and (4) in the case of a
LIBOR Loan, the duration of the Interest Period applicable thereto. The Agent shall promptly
notify the Paying Agent and each Bank of each such notice. Not later than 2:00p.m. (Central time)
on the date of such Revolving Credit Loans, each Bank will make available to the Paying Agent in
immediately available funds, such Bank’s Pro Rata Share of such Revolving Credit Loans. After the
Paying Agent’s receipt of such funds, not later than 4:30 p.m. (Central time) on the date of such
Revolving Credit Loans and upon fulfillment of the applicable conditions set forth in Article
3, the

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Paying Agent will make such Revolving Credit Loans available to the Borrower in
immediately available funds by crediting the amount thereof to the Borrower’s account with the
Agent.

     Section 2.03. Non-Receipt of Funds by Agent. Unless the Agent and Paying Agent shall have
received notice from a Bank prior to the date on which such Bank is to provide funds to the Paying
Agent for a Loan to be made by such Bank that such Bank will not make available to the Paying Agent
such funds, the Paying Agent may assume that such Bank has made such funds available to the Paying
Agent on the date of such Loan in accordance with Section 2.04 and the Paying Agent in its
sole discretion may, but shall not be obligated to, in reliance upon such assumption, make
available to the Borrower on such date a corresponding amount. If and to the extent such Bank
shall not have so made such funds available to the Paying Agent, such Bank agrees to repay to the
Paying Agent forthwith on demand such corresponding amount together with interest thereon, for each
day from the date such amount is made available to the Borrower until the date such amount is
repaid to the Paying Agent, at the customary rate set by the Paying Agent for the correction of
errors among banks for three Business Days and thereafter at the Prime Rate. If such Bank shall
repay to the Paying Agent such corresponding amount, such amount so repaid shall constitute such
Bank’s Loan for purposes of this Agreement. If such Bank does not pay such
corresponding amount forthwith upon the Paying Agent’s demand therefor, the Paying Agent shall
promptly notify the Borrower, and the Borrower shall immediately pay such corresponding amount to
the Paying Agent with interest thereon, for each day from the date such amount is made available to
the Borrower until the date such amount is repaid to the Paying Agent, at the rate of interest
applicable at the time to such proposed Loan.

     Unless the Agent and Paying Agent shall have received notice from the Borrower prior to the
date on which any payment is due to the Banks hereunder that the Borrower will not make such
payment in full, the Agent may assume that the Borrower has made such payment in full to the Paying
Agent on such date and the Agent and the Paying Agent in its sole discretion may, but shall not be
obligated to, in reliance upon such assumption, cause to be distributed to each Bank on such due
date an amount equal to the amount then due such Bank. If and to the extent the Borrower shall not
have so made such payment in full to the Paying Agent, each Bank shall repay to the Paying Agent
forthwith on demand such amount distributed to such Bank together with interest thereon, for each
day from the date such amount is distributed to such Bank until the date such Bank repays such
amount to the Paying Agent, at the customary rate set by the Paying Agent for the correction of
errors among banks for three (3) Business Days and thereafter at the Prime Rate.

     Section 2.04. Settlement. It is agreed that each Bank’s funded portion of the Revolving
Credit Loan is intended by the Banks to be equal at all times to such Bank’s Pro Rata Share of the
outstanding Revolving Credit Loans. Notwithstanding such agreement, the Paying Agent, and the
other Banks agree (which agreement shall not be for the benefit of or enforceable by the Borrower)
that in order to facilitate the administration of this Agreement and the other Loan Documents,
settlement among them as to the Revolving Credit Loans shall take place on a periodic basis in
accordance with the following provisions:

     (i) The Paying Agent shall request settlement (“settlement”) with the Banks on a daily basis,
or on a more frequent basis if so determined by the Paying Agent, (1) with respect to

14

 

each
outstanding Loan, and (2) with respect to collections received, in each case, by notifying the
Banks of such requested Settlement by telecopy, telephone, or other similar form of transmission,
of such requested Settlement, no later than 10:00 a.m. (Tulsa, Oklahoma time) on each Business Day
(the “Settlement Date”). Each Bank shall make the amount of such Lender’s Pro Rata Share of the
outstanding principal amount of the Loan with respect to which Settlement is requested available to
the Paying Agent in same day funds to such account of the Paying Agent as the Paying Agent may
designate, not later than 12:00 noon (Tulsa, Oklahoma time), on the Settlement Date applicable
thereto, regardless of whether the applicable conditions precedent set forth in Article 3
have then been satisfied. Such amounts made available to the Paying Agent shall be applied against
the amount of the applicable loan and, together with the portion of such Loan representing Bank’s
Pro Rata Share thereof, shall constitute Revolving Credit Loans of such Banks. If any such amount
is not made available to the Paying Agent by any Bank on the Settlement Date applicable thereto,
the Paying Agent shall be entitled to recover such amount on demand from such Bank together with
interest thereon at the Federal Funds Rate for the first three (3) days from and after such demand
and thereafter at the Interest Rate then applicable to the Revolving Credit Loans.

     (ii) Notwithstanding the foregoing, not more than one (1) Business Day after demand is made by
the Paying Agent, each other Bank shall irrevocably and unconditionally
purchase and receive from the Paying Agent, without recourse or warranty, an undivided
interest and participation in such Revolving Credit Loan to the extent of such Bank’s Pro Rata
Share thereof by paying to the Paying Agent, in same day funds, an amount equal to such Bank’s Pro
Rata Share of such Revolving Credit Loan. If such amount is not in fact made available to the
paying Agent by any Bank, the Paying Agent shall be entitled to recover such amount on demand from
such Bank together with interest thereon at the Federal Funds Rate for the first three (3) days
from and after such demand and thereafter at the Interest Rate then applicable to the Revolving
Credit Loans.

     (iii) From and after the date, if any, on which any Bank purchases an undivided interest and
participation in any Revolving Credit Loan pursuant to subsection (ii) above, the Paying Agent
shall, subject to reimbursement to Paying Agent for any amounts due from such Bank, promptly
distribute to such Bank at such address as such Bank may request in writing, such Bank’s Pro Rata
Share of all payments of principal and interest and all proceeds of Collateral received by the
Paying Agent in respect of such Revolving Credit Loan.

     (iv) The Paying Agent shall record on its books the principal amount of the Revolving Loans
owing to each Bank. In addition, each Bank is authorized, at such Bank’s option, to note the date
and amount of each payment or prepayment of principal of such Bank’s Revolving Credit Loans in its
books and records, including computer records, such books and records constituting rebuttably
presumptive evidence, absent manifest error, of the accuracy of the information contained therein.

     (v) All Revolving Credit Loans shall be made by the Banks simultaneously and in accordance
with their Pro Rata Shares. It is understood that (a) no Bank shall be responsible for any failure
by any other Bank to perform its obligation to make any Revolving Credit Loans hereunder, (b) no
failure by any Banks to perform its obligation to make any Revolving Credit Loan hereunder

15

 

shall
excuse any other Bank from its obligation to make any Revolving Credit Loans hereunder, and (c) the
obligations of each Bank hereunder shall be several, not joint and several.

     Section 2.05. Interest. The Borrower shall pay interest to the Agent for the account of each
Bank on the outstanding and unpaid principal amount of that Bank’s Revolving Credit Loans made
under this Agreement at a rate per annum, as follows:

     (1) For a Prime Loan at the Adjusted Prime Rate; and

     (2) For a LIBOR Loan at the Adjusted LIBOR Rate.

     The Adjusted Prime Rate and Adjusted LIBOR Rate shall be determined in accordance with the
following:

	 	 	 	 	 
	                    Borrower’s Ratio of	 	Adjusted	 	Adjusted
	                    Funded Debt to EBITDA	 	LIBOR Rate	 	Prime Rate
	< 2.0

	 	LIBOR Rate plus 3.0%
	 	Prime Rate plus 0.0%
	3 2.0 < 2.25

	 	LIBOR Rate plus 3.25%
	 	Prime Rate plus .25%
	3 2.25 < 2.50

	 	LIBOR Rate plus 3.50%
	 	Prime Rate plus .50%
	> 2.50

	 	LIBOR Rate plus 3.75%
	 	Prime Rate plus .75%

     Any change in the interest rate based on the Prime Rate resulting from a change in the Prime
Rate shall be effective as of the opening of business on the day on which such change in the Prime
Rate becomes effective. The ratio of Funded Debt to EBITDA shall be calculated based upon the
immediately preceding twelve (12) consecutive full months.

     Interest on each Prime Loan and LIBOR Loan shall be calculated on the basis of the actual
number of days elapsed.

     Interest on the Loans shall be paid in immediately available funds to the Agent at its
Principal Office for the account of the applicable Lending Office of each Bank as follows:

     (1) For each Prime Loan on the first day of each month commencing the first such date
after such Loan and at maturity for such Loan; and

     (2) For each LIBOR Loan, on the last day of the Interest Period with respect thereto
and, in the case of an Interest Period greater than three months, at three (3) month
intervals after the first day of such Interest Period.

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     Section 2.06. Interest Rate Determination. The Agent shall give prompt notice to the Borrower
and the Banks of the applicable interest rate determined by the Agent pursuant to the terms of this
Agreement.

     Section 2.07. Unused Portion Fee. The Borrower agrees to pay to the Agent for the account of
each Bank a commitment fee on the average daily unused portion of such Bank’s Commitment from the
date of this Agreement until the Termination Date at the rate of one-tenth of one percent (1/10 of
1%) per annum, payable on the last day of each quarter during the term of such Bank’s Commitment,
commencing December 31, 2004, and ending on the Termination Date. Upon receipt of any commitment
fees, the Agent will promptly thereafter cause to be distributed such payments to the Banks in the
proportion that each Bank’s unused Commitment bears to the total of all the Banks’ unused
Commitments; provided, that any Additional Lender will not receive any payment of Unused Portion
Fees earned or paid prior to the date this Agreement is executed by said Additional Lender.
Further, no Unused Portion Fees will be paid for any given month during which the average monthly
revolving balance exceeds $21,900,000 during each quarter the Unused Portion Fee is billed.

     Section 2.08. Notes. All Loans made by each Bank under this Agreement shall be evidenced by,
and repaid with interest in accordance with, a promissory note of the Borrower to Bank in the
amount of the Bank’s Commitment, in form and content as set forth on Exhibit “D-1” through
“Exhibit D-7” hereto, duly completed, dated the date of this Agreement or, with
respect to the Note to an Additional Lender, a date to be determined, and payable to such Bank for
the account of its applicable Lending Office, such Note to represent the obligation of the Borrower
to repay the Loans. Each Bank is hereby authorized by the Borrower to endorse on the schedule
attached to the Note held by it the amount and type of each Revolving Credit Loan and each renewal,
conversion, and payment of principal amount received by such Bank for the account of its applicable
Lending Office on account of its Revolving Credit Loans, which endorsement shall, in the absence of
manifest error, be conclusive as to the outstanding balance of the Revolving Credit Loans made by
such Bank; provided, however, that the failure to make such notation with respect to any Revolving
Credit Loan or renewal, conversion, or payment shall not limit or otherwise affect the obligations
of the Borrower under this Agreement or the Note held by such Bank.

     The aggregate principal balance and all accrued interest of all Loans shall be repaid on the
Termination Date.

     Section 2.09. Method of Payment. The Borrower shall make each payment under this Agreement
and under the Notes not later than 5:00 p.m. (Central time) on the date when due in lawful money of
the United States to the Agent at its Principal Office for the account of the applicable Lending
Office of each Bank in immediately available funds. The Agent will promptly thereafter cause to be
distributed (1) such payments of principal and interest in like funds to each Bank for the account
of its applicable Lending Office in the proportion that such Bank’s Loans to which the payment
applies bears to the total amount of all Banks’ Loans to which the payment applies and (2) other
fees payable to any Bank to be applied in accordance with the terms of this Agreement; provided,
that any Additional Lender will not receive any payment of principal, interest or fees accrued or
paid by Borrower prior to the date this Agreement is executed by said Additional Lender. The
Borrower hereby authorizes each Bank, if and to the extent payment is not made when

17

 

due under this
Agreement or under the Notes, to charge from time to time against any account of the Borrower with
such Bank any amount as due. Whenever any payment to be made under this Agreement or under the
Notes shall be stated to be due on a day other than a Business Day, such payment shall be made on
the next succeeding Business Day, and such extension of time shall be included in the computation
of the payment of interest and the commitment fee, as the case may be, except, in the case of a
LIBOR Loan, if the result of such extension would be to extend such payment into another calendar
month, such payment shall be made on the immediately preceding Business Day.

     Section 2.10. Use of Proceeds. The proceeds of the Loan hereunder shall be used by the
Borrower to finance working capital requirements and repay certain existing indebtedness. The
Borrower will not, directly or indirectly, use any part of such proceeds for the purpose of
purchasing or carrying any margin stock within the meaning of Regulation U of the Board of
Governors of the Federal Reserve System or to extend credit to any Persons for the purpose of
purchasing or carrying any such margin stock, or for any purpose which violates, or is inconsistent
with, Regulation X of such Board of Governors.

     Section 2.11. Illegality. Notwithstanding any other provision in this Agreement, if any Bank
determines that any applicable law, rule, or regulation, or any change therein, or any change 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 such Bank
(or its Lending Office) with any request or directive (whether or not having the force of law) of
any such authority, central bank, or comparable agency shall make it unlawful or impossible for
such Bank (or its Lending Office) to maintain or fund its LIBOR Loans, then upon notice to the
Borrower (with a copy to the Agent) by such Bank the outstanding principal amount of all LIBOR
Loans, together with interest accrued thereon, and any other amounts payable to each Bank under
this Agreement shall be repaid (a) immediately upon demand of such Bank if such change or
compliance with such request, in the judgment of such Bank, requires immediate repayment, or (b) at
the expiration of the last Interest Period to expire before the effective date of any such change
or request.

     Section 2.12. Disaster. Notwithstanding anything to the contrary herein, if the Agent
determines (which determination shall be conclusive) that the relevant rates of interest referred
to in the definition of LIBOR Rate upon the basis of which the rate of interest for any such type
of Loan is to be determined do not accurately cover the cost to the Banks of making or maintaining
such type of Loans, then the Agent shall forthwith give notice thereof to the Borrower, whereupon
(a) the obligation of the Banks to make LIBOR Loans shall be suspended until the Agent notifies the
Borrower that the circumstances giving rise to such suspension no longer exist, and (b) the
Borrower shall repay in full the then outstanding principal amount of each LIBOR Loan together with
accrued interest thereon, on the last day of the then current Interest Period applicable to such
Loan.

     Section 2.13. Increased Cost. From time to time upon notice to the Borrower from a Bank (with
a copy to the Agent) the Borrower shall pay to the Agent for the account of the applicable Bank
such amounts as any Bank may determine to be necessary to compensate such Bank for any costs
incurred by such Bank which such Bank reasonably determines are attributable to its making or
maintaining any LIBOR Loan hereunder or its obligation to make any such Loan hereunder, or any

18

 

reduction in any amount receivable by such Bank under this Agreement or its Note in respect of any
such Loans or such obligation (such increases in costs and reductions in amounts receivable being
herein called “Additional Costs”), resulting from any change after the date of this Agreement in
U.S. federal, state, municipal, or foreign laws or regulations (including Regulation D), or the
adoption or making after such date of any interpretations, directives, or requirements applying to
a class of banks including such Bank of or under U.S. federal, state, municipal, or foreign laws or
regulations (whether or not having the force of law) by any court or governmental or monetary
authority charged with the interpretation or administration thereof (“Regulatory Change”), which:
(1) changes the basis of taxation of any amounts payable to such Bank under this Agreement or its
Note in respect of any of such Loans (other than taxes imposed on the overall net income of such
Bank or of its Lending Office for any of such Loans by the jurisdiction where the Principal Office
or such Lending Office is located); or (2) imposes or modifies any reserve, special deposit,
compulsory loan, or similar requirements relating to any extensions of credit or other assets of,
or any deposits with or other liabilities of, such Bank pertaining to this Agreement (including any
of such Loans or any deposits referred to in the definition of LIBOR Rate); or (3) imposes any
other condition affecting this Agreement or its Note (or any of such extensions of credit or
liabilities). Such Bank will notify the Borrower (with a copy to the Agent) of any event occurring
after the date of this Agreement which will entitle such Bank to compensation pursuant to this
Section 2.13 as promptly as practicable after it obtains knowledge thereof and determines to
request such compensation.

     Determinations by any Bank for purposes of this Section 2.13 of the effect of any
Regulatory Change on its costs of making or maintaining Loans or on amounts receivable by it in
respect of Loans, and of the additional amounts required to compensate any such Bank in respect of
any Additional Costs, shall be conclusive, provided that such determinations are made on a
reasonable basis.

     Section 2.14. Risk-Based Capital. In the event that any Bank determines that (1) compliance
with any judicial, administrative, or other governmental interpretation of any law or regulation or
(2) compliance by such Bank or any corporation controlling such Bank with any guideline or request
from any central bank or other governmental authority (whether or not having the force of law) has
the effect of requiring an increase in the amount of capital required or expected to be maintained
by such Bank or any corporation controlling such Bank, and such Bank reasonably determines that
such increase is based upon its obligations hereunder, and other similar obligations, the Borrower
shall pay to the Agent, for the account of the applicable Bank, such additional amount as shall be
reasonably determined by the Bank to be the amount attributable to such Bank’s obligations to the
Borrower hereunder. Such Bank will notify the Borrower (with a copy to the Agent) of any event
occurring after the date of this Agreement that will entitle such Bank to compensation pursuant to
this Section 2.14 as promptly as practicable after it obtains knowledge thereof and
determines to request such compensation.

     Determinations by any Bank for purposes of this Section 2.14 of the effect of any
increase in the amount of capital required to be maintained by such Bank and of the amount
attributable to such Bank’s obligations to the Borrower hereunder shall be conclusive, provided
that such determinations are made on a reasonable basis.

19

 

     Section 2.15. Funding Loss Indemnification. Upon notice to the Borrower from a Bank (with a
copy to the Agent) the Borrower shall pay to the Agent for the account of the applicable Bank, such
amount or amounts as shall be sufficient (in the reasonable opinion of such Bank) to compensate it
for any loss, cost, or expense incurred as a result of:

     (3) Any payment of a LIBOR Loan on a date other than the last day of the Interest
Period for such Loan including, but not limited to acceleration of the Loans by the Agent
pursuant to Section 8.01; or

     (4) Any failure by the Borrower to borrow or convert, as the case may be, a LIBOR Loan
on the date for borrowing or conversion, as the case may be, specified in the relevant
notice under Section 2.02.

     Section 2.16. Termination Fee. The Borrower may terminate this Agreement at any time upon not
less than ten (10) Business Day’s notice to Agent of such intention, provided, that all monetary
obligations (e.g. payment of Notes) and any indemnification shall continue; and provided further
that Borrower agrees to pay to the Agent for the account of each Bank a termination fee in an
aggregate amount equal to $90,000 in the event the credit facility is terminated for any reason
prior to six (6) months from the execution date hereof; provided, that no termination fee shall be
payable for any prepayment if the Borrower is required to make any payments under Sections 2.13
and/or 2.14.

     Section 2.17. Audit Fees. The Borrower agrees to pay to the Agent all costs and fees
reasonably incurred by the Agent’s internal auditors in connection with quarterly audits of the
Borrower performed by such auditors during the term of this Agreement; provided that, prior
to the occurrence of an Event of Default, the Agent shall not be entitled to reimbursement for any
such costs and fees incurred in connection with audits in an amount greater than $7,500 during any
year (with each year beginning on the Closing Date or an anniversary date thereof and ending twelve
(12) months thereafter) of this Agreement. A pro-rata portion of the audit fee shall be payable in
arrears on the first day of each month commencing with the month immediately following the Closing
Date. Notwithstanding the foregoing, upon the occurrence of any Event of Default, the Borrower
shall pay all of the Agent’s costs incurred in connection with the verification, audit, and
inspection of the Collateral without regard to the foregoing limitations.

     Section 2.18. Right to Cure. The Agent may, in its discretion, pay any amount or do any act
required of the Borrower hereunder or under any other Loan Document in order to preserve, protect,
maintain or enforce the Obligations, the Collateral or the Agent’s Liens therein, which the
Borrower fails to pay or do, including, without limitation, payment of any judgment against the
Borrower, any insurance premium, any landlord’s claim, any other Lien upon or with respect to the
Collateral. All payments that the Agent makes under this Section 2.18 and all
out-of-pocket costs and expenses that the Agent pays or incurs in connection with any action taken
by it hereunder shall be charged to the Borrower’s Loan Account as a Revolving Credit Loan. Any
payment made or other action taken by the Agent under this Section 2.18 shall be without
prejudice to any right to assert an Event of Default hereunder.

20

 

     Section 2.19. Agency Fee. Borrower agrees to pay Agent for its sole benefit an annual agency
fee equal to $30,000, payable in twelve (12) monthly installments of $2,500 on the first day of
each month.

Article 3

CONDITIONS PRECEDENT

     Section 3.01. Conditions Precedent to Initial Loan. The obligation of each Bank to make its
initial Loan to the Borrower is subject to the conditions precedent that the Agent shall have
received on or before the day of such Loan each of the following, in form and substance
satisfactory to the Agent and its counsel and (except for the Notes) in sufficient copies for each
Bank:

     (1) Notes. The Note of each Bank duly executed by the Borrower;

     (2) Security Agreement-Borrower. A Security Agreement duly executed by the Borrower
together with (a) Financing Statements (Form UCC-1) to be duly filed under the Uniform
Commercial Code of all jurisdictions necessary or, in the opinion of any of the Banks,
desirable to perfect the security interest created by the Security Agreement; and (b)
chattel checks identifying all of the financing statements on file with respect to the
Borrower in all jurisdictions referred to under (a), indicating that no party claims an
interest in any of the Collateral;

     (3) Security Agreement-ACM. A Security Agreement duly executed by ACM together with
(a) Financing Statements (Form UCC-1) to be duly filed under the Uniform Commercial Code of
all jurisdictions necessary or, in the opinion of any of the Banks, desirable to perfect the
security interest created by the Security Agreement; and (b) chattel checks identifying all
of the financing statements on file with respect to ACM in all jurisdictions referred to
under (a), indicating that no party claims an interest in any of the Collateral;

     (4) Security Agreement-TCM. A Security Agreement duly executed by TCM together with
(a) Financing Statements (Form UCC-1) to be duly filed under the Uniform Commercial Code of
all jurisdictions necessary or, in the opinion of any of the Banks, desirable to perfect the
security interest created by the Security Agreement; and (b) chattel checks identifying all
of the financing statements on file with respect to TCM in all jurisdictions referred to
under (a), indicating that no party claims an interest in any of the Collateral;

     (5) Evidence of all corporate action by the Borrower. Certified (as of the date of
this Agreement) copies of all corporate action taken by the Borrower, including resolutions
of its Board of Directors, authorizing the execution, delivery, and performance of the Loan
Documents to which it is a party and each other document to be delivered pursuant to this
Agreement;

21

 

     (6) Incumbency and signature certificate of Borrower. A certificate (dated as of the
date of this Agreement) of the Secretary of the Borrower certifying the names and true
signatures of the officers of the Borrower authorized to sign the Loan Documents to which it
is a party and the other documents to be delivered by the Borrower under this agreement;

     (7) Opinion of counsel for Borrower. A favorable opinion of counsel for the Borrower,
in substantially the form of Exhibit “E”, and as to such other matters as the Agent
may reasonably request;

     (8) Guaranty. The Guaranty duly executed by the Guarantor;

     (9) Evidence of all corporate action by Guarantor. Certified (as of the date of this
Agreement) copies of all corporate action taken by the Guarantor, including resolutions of
its Board of Directors, authorizing the execution, delivery, and performance of the
Guaranty;

     (10) Incumbency and signature certificate of Guarantor. A certificate (dated as of the
date of this Agreement) of the Secretary of the Guarantor certifying the names and true
signatures of the officers of the Guarantor authorized to sign the Guaranty; and

     (11) Opinion of counsel for Guarantor. A favorable opinion of counsel for the
Guarantor, in substantially the form of Exhibit “F”, and as to such other matters as
the Agent may reasonably request.

     Section 3.02. Conditions Precedent to All Loans. The obligation of each Bank to make each
Loan (including the initial Loan) shall be subject to the further conditions precedent that on the
date of such Loan:

     (1) The following statements shall be true and correct:

     (a) The representations and warranties contained in Article 4 of this
Agreement, in Section 8 of the Security Agreement, and in Sections 24
through 29 of the Guaranty are correct in all material respects on and as of the
date of such Loans as though made on and as of such date other than any such
representation or warranty which relates to a specified prior date and except to the
extent the Agent and the Banks have been notified in writing by the Borrower that
any representation or warranty is not correct and the Majority Banks have explicitly
waived in writing compliance with such representation or warranty; and

     (b) No Default or Event of Default has occurred and is continuing, or would
result from such Loans.

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Article 4

REPRESENTATIONS AND WARRANTIES

     The Borrower represents and warrants to each Bank that:

     Section 4.01. Incorporation, Good Standing, and Due Qualification. Borrower and each of its
respective Subsidiaries, is a corporation duly incorporated, validly existing, and in good standing
under the laws of the jurisdiction of its incorporation; has the corporate power and authority to
own its assets and to transact the business in which it is now engaged or proposed to be engaged
in; and is duly qualified as a foreign corporation and in good standing under the laws of each
other jurisdiction in which such qualification is required.

     Section 4.02. Corporate Power and Authority. The execution, delivery, and performance by the
Borrower of the Loan documents to which it is a party have been duly authorized by all necessary
corporate action and do not and will not (1) require any consent or approval of the stockholders of
such corporation; (2) contravene such corporation’s charter or bylaws; (3) violate any provision of
any law, rule, regulation (including, without limitation, Regulations U and X of the Board of
Governors of the Federal Reserve System), order, writ, judgment, injunction, decree, determination,
or award presently in effect having applicability to such corporation; (4) result in a breach of or
constitute a default under any indenture or loan or credit agreement or any other agreement, lease,
or instrument to which such corporation is a party or by which it or its properties may be bound or
affected; (5) result in, or require, the creation or imposition of any Lien except as contemplated
by this Agreement, upon or with respect to any of the properties now owned or hereafter acquired by
such corporation; and (6) cause such corporation to be in default under any such law, rule,
regulation, order, writ, judgment, injunction, decree, determination, or award or any such
indenture, agreement, lease, or instrument.

     Section 4.03. Legally Enforceable Agreement. This Agreement is, and each of the other Loan
Documents when delivered under this Agreement will be legal, valid, and binding obligations of the
Borrower enforceable against the Borrower in accordance with their respective terms, except to the
extent that such enforcement may be limited by applicable bankruptcy, insolvency, and other similar
laws affecting creditors’ rights generally.

     Section 4.04. Financial Statements. The interim balance sheet of the Borrower as of October
31, 2004, and the related statement of operations for the six (6) month period then ended, copies
of which have been furnished to each Bank, are complete and correct and fairly present the
financial condition of the Borrower as of such date and the results of the operations of the
Borrower for the period covered by such statements, all in accordance with GAAP consistently
applied (except for the absence of footnotes for interim financial statements and subject to
year-end adjustments in the case of the interim financial statements), and since October 31, 2004,
there has been no material adverse change in the condition (financial or otherwise), business, or
operations of the Borrower. There are no liabilities of the Borrower or any Subsidiary, fixed or
contingent, which are material and are not reflected in the financial statements or in the notes
thereto, other than liabilities arising in the ordinary course of business since October 31, 2004.
No information, exhibit, or report furnished by the Borrower to any Bank in connection with the
negotiation of this Agreement contained any material misstatement of fact or omitted to state a
material fact or any fact necessary to make the statement contained therein not materially
misleading.

23

 

     Section 4.05. Labor Disputes and Acts of God. Neither the business nor the properties of the
Borrower are affected by any fire, explosion, accident, strike, lockout, or other labor dispute,
drought, storm, hail, earthquake, embargo, act of God or of the public enemy, or other casualty
(whether or not covered by insurance), which materially and adversely affect the business or the
operation of the Borrower.

     Section 4.06. Other Agreements. Neither the Borrower nor any Subsidiary is a party to any
material indenture, loan, or credit agreement, or to any material lease or other agreement or
instrument or subject to any charter or corporate restriction which is likely to have a material
adverse effect on the business, properties, assets, operations, or conditions, financial or
otherwise, of the Borrower or any Subsidiary or the ability of the Borrower to carry out its
obligations under the Loan Documents to which it is a party. Neither the Borrower nor any
Subsidiary is in default in any respect in the performance, observance, or fulfillment of any of
the obligations, covenants, or conditions contained in any agreement or instrument material to its
business to which it is a party.

     Section 4.07. Litigation. There is no pending or to the Borrower’s knowledge threatened
action or proceeding against or affecting the Borrower or any of its Subsidiaries before any court,
governmental agency, or arbitrator, which is likely to, in any one case or in the aggregate,
materially adversely affect the financial condition, operations, properties, or business of the
Borrower or any Subsidiary or the ability of the Borrower to perform its obligations under the Loan
Documents to which it is a party.

     Section 4.08. No Defaults on Outstanding Judgments or Orders. The Borrower and its
Subsidiaries have satisfied all judgments, and neither the Borrower nor any Subsidiary is in
default
with respect to any judgment, writ, injunction, decree, rule, or regulation of any court,
arbitrator, or federal, state, municipal, or other governmental authority, commission, board,
bureau, agency, or instrumentality, domestic or foreign; provided that non-compliance with the
foregoing shall not constitute a Default if such non-compliance does not have a material adverse
effect on the financial condition or operation of the Borrower.

     Section 4.09. Ownership and Liens. The Borrower and each Subsidiary have title to, or valid
leasehold interests in, all of their properties and assets (except for assets for which the company
has not as yet paid, but has included such obligation in its accounts payable or accrued
liabilities), real and personal, including the properties and assets and leasehold interests
reflected in the financial statements referred to in Section 4.04 (other than any
properties or assets disposed of in the ordinary course of business), and none of the material
properties or assets owned by the Borrower or any Subsidiary and none of their leasehold interests
is subject to any Lien, except such as may be permitted pursuant to Section 6.01 of this
Agreement.

     Section 4.10. Subsidiaries and Ownership of Stock. Set forth in Exhibit “G” is a
complete and accurate list of the Subsidiaries of the Borrower, showing the jurisdiction of
incorporation of each and showing the percentage of the Borrower’s ownership of the outstanding
stock of each Subsidiary. All of the outstanding capital stock of each such Subsidiary has been
validly issued, is fully paid and nonassessable, and is owned by the Borrower free and clear of all
Liens.

24

 

     Section 4.11. ERISA. Each Plan is in compliance in the material respects with all applicable
provisions of ERISA. Neither a Reportable Event nor a Prohibited Transaction has occurred and is
continuing with respect to any Plan; no notice of intent to terminate a Plan has been filed, nor
has any Plan been terminated; no circumstances exist which constitute grounds entitling the PBGC to
institute proceedings to terminate, or appoint a trustee to administer, a Plan, nor has the PBGC
instituted any such proceedings; neither the Borrower nor any Commonly Controlled Entity has
completely or partially withdrawn from a Multiemployer Plan; the Borrower and each Commonly
Controlled Entity have met their minimum funding requirements under ERISA with respect to all of
their Plans and the present value of all vested benefits under each Plan does not exceed the fair
market value of all Plan assets allocable to such benefits, as determined on the most recent
valuation date of the Plan and in accordance with the provisions of ERISA; and neither the Borrower
nor any Commonly Controlled Entity has incurred any liability to the PBGC under ERISA which has
resulted or could reasonably be expected to result in a material adverse effect on the financial
condition of the Borrower.

     Section 4.12. Operation of Business. The Borrower and each of its Subsidiaries possess all
licenses, permits, franchises, patents, copyrights, trademarks, and trade names, or rights thereto,
to conduct their respective businesses substantially as now conducted and as presently proposed to
be conducted, the absence of which could reasonably be expected to cause a Material Adverse Effect
and the Borrower and each of its Subsidiaries are not in violation of any valid rights of others
with respect to any of the foregoing which could reasonably be expected to cause a Material Adverse
Effect.

     Section 4.13. Taxes. The Borrower and each of its Subsidiaries and the Guarantor have filed
all tax returns (federal, state, and local) required to be filed and have paid all taxes,
assessments, and
governmental charges and levies thereon to be due, including interest and penalties.
Notwithstanding the foregoing, Bank acknowledges that Borrower is currently being audited by the
Internal Revenue Service; and in connection therewith, Borrower represents to Bank that to the best
of its knowledge, that as of the date hereof, the Internal Revenue Service has neither contested
nor led Borrower to believe it will contest any of the amounts on the Borrower’s tax returns for
the periods being audited that are financially material to Borrower.

     Section 4.14. Debt. Exhibit “H” is a complete and correct list as of the Closing Date
of all credit agreements, indentures, guaranties, Capital Leases, and other investments,
agreements, and arrangements presently in effect and in excess of $250,000 in each instance
providing for or relating to extensions of credit (including agreements and arrangements for the
issuance of letters of credit or for acceptance financing) in respect of which the Borrower or any
Subsidiary is in any manner directly or contingently obligated; and the maximum principal or face
amounts of the credit in question, outstanding or to be outstanding, are correctly stated, and all
Liens of any nature given or agreed to be given as security therefor are correctly described or
indicated in such Exhibit. Such Exhibit, however, shall not include real estate loans or leases
for car lot locations.

     Section 4.15. Environment. The Borrower has duly complied with, and their businesses,
operations, assets, equipment, property, leaseholds, or other facilities are in material compliance

25

 

with, the provisions of all federal, state, and local environmental, health, and safety laws, codes
and ordinances and all rules and regulations promulgated thereunder. The Borrower has been issued
and will maintain all material required federal, state, and local permits, licenses, certificates,
and approvals relating to (1) air emissions; (2) discharges to surface water or groundwater; (3)
noise emissions; (4) solid or liquid waste disposal; (5) the use, generation, storage,
transportation, or disposal of toxic or hazardous substances or wastes (intended hereby and
hereafter to include any and all such materials listed in any federal, state, or local law, code,
or ordinance and all rules and regulations promulgated thereunder as hazardous or potentially
hazardous); or (6) other environmental, health, or safety matters the absence of which could
reasonably be expected to cause a materially adverse effect. The Borrower has not received notice
of, or knows of, or suspects facts which might constitute any violations of any federal, state, or
local environmental, health, or safety laws, codes or ordinances and any rules or regulations
promulgated thereunder with respect to its businesses, operations, assets, equipment, property,
leaseholds, or other facilities the existence of which could reasonably be expected to cause a
materially adverse effect. Except in accordance with a valid governmental permit, license,
certificate or approval, there has been no emission, spill, release, or discharge into or upon (1)
the air; (2) soils, or any improvements located thereon; (3) surface water or groundwater; or (4)
the sewer, septic system or waste treatment, storage or disposal system servicing the premises, of
any toxic or hazardous substances or wastes at or from the premises the existence of which could
reasonably be expected to cause a materially adverse effect. There has been no complaint, order,
directive, claim, citation, or notice by any governmental authority or any person or entity with
respect to (1) air emissions; (2) spills, releases, or discharges to soils or improvements located
thereon, surface water, groundwater or the sewer, septic system or waste treatment, storage or
disposal systems servicing the premises; (3) noise emissions; (4) solid or liquid waste disposal;
(5) the use, generation, storage, transportation, or disposal of toxic or hazardous substances or
waste; or (6) other environmental, health, or safety matters affecting the Borrower or its
business, operations, assets, equipment, property, leaseholds, or other facilities the existence
of which could reasonably be expected to cause a materially adverse effect. The Borrower
does not have any material indebtedness, obligation, or liability, absolute or contingent,
matured or not matured, with respect to the storage, treatment, cleanup, or disposal of any solid
wastes, hazardous wastes, or other toxic or hazardous substances.

Article 5

AFFIRMATIVE COVENANTS

     So long as any Note shall remain unpaid or any Bank shall have any Commitment under this
Agreement, the Borrower will:

     Section 5.01. Maintenance of Existence. Preserve and maintain, and cause each Subsidiary to
preserve and maintain, its corporate existence and good standing in the jurisdiction of its
incorporation, and qualify and remain qualified, as a foreign corporation in each jurisdiction in
which such qualification is required.

26

 

     Section 5.02. Maintenance of Records. Keep, and cause each Subsidiary to keep, adequate
records and books of account, in which complete entries will be made in accordance with GAAP
consistently applied, reflecting all financial transactions of the Borrower and its Subsidiaries.

     Section 5.03. Maintenance of Properties. Maintain, keep, and preserve, and cause each
Subsidiary to maintain, keep, and preserve, all of its properties (tangible and intangible) as it
reasonably deems necessary or useful in the proper conduct of its business in good working order
and condition, ordinary wear and tear excepted.

     Section 5.04. Conduct of Business. Continue, and cause each Subsidiary to continue, to engage
in an efficient and economical manner in a business of the same general type as conducted by it on
the date of this Agreement.

     Section 5.05. Maintenance of Insurance. Maintain, and cause each subsidiary to maintain,
insurance with financially sound and reputable insurance companies or associations in such amounts
and covering such risks as are usually carried by companies engaged in the same or a similar
business and similarly situated, which insurance may provide for reasonable deductibility from
coverage thereof.

     Section 5.06. Compliance With Laws. Comply, and cause each Subsidiary to comply, in all
respects with all applicable laws, rules, regulations, and orders, such compliance to include,
without limitation, paying before the same become delinquent all taxes, assessments, governmental
charges imposed upon it or upon its property.

     Section 5.07. Right of Inspection. At any reasonable time and from time to time, permit any
Bank or any agent or representative thereof to examine and make copies of and abstracts from the
records and books of account of, and visit the properties of, the Borrower and any Subsidiary, and
to discuss the affairs, finances, and accounts of the Borrower and any Subsidiary with any of their
respective officers and directors and the Borrower’s independent accountants, provided that Banks
shall keep all such information and records confidential.

     Section 5.08. Reporting Requirements. Furnish to Agent:

     (1) Monthly financial statements. As soon as available and in any event within
forty-five (45) days after the end of each calendar month, consolidated balance sheets of
the Borrower and its Subsidiaries as of the end of such month, consolidated statements of
operations of the Borrower and its Subsidiaries for such month and the period commencing at
the end of the previous fiscal year and ending with the end of such month, and, if
requested, consolidated statements of cash flow of the Borrower and its Subsidiaries for the
portion of the fiscal year ended with the last day of such month, all in reasonable detail
and all prepared in accordance with GAAP (except with respect to the absence of footnotes)
consistently applied and certified by the responsible accounting officer or other
responsible officer of the Borrower (subject to year-end adjustments);

27

 

     (2) Audited Annual financial statements. As soon as available and in any event within
one hundred ten (110) days after the end of each fiscal year of the Borrower, consolidated
balance sheets of the Borrower and its Subsidiaries as of the end of such fiscal year,
consolidated statements of operations and shareholders’ equity of the Borrower and its
Subsidiaries for such fiscal year, and consolidated statements of cash flow of the Borrower
and its Subsidiaries for such fiscal year, all in reasonable detail and stating in
comparative form (beginning with the April 30, 2006 year end) the respective figures for the
corresponding date and period in the prior fiscal year and all prepared in accordance with
GAAP consistently applied accompanied by an opinion thereon unqualified as to scope by
independent accountants selected by the Borrower and reasonably acceptable to the Agent (and
Agent hereby approves the Borrower’s current auditor or any other “Big 5” accounting
firm);

     (3) As soon as available and in any event within thirty (30) days after the end of each
fiscal year of the Borrower, annual forecasts projecting the operating results of Borrower
for the coming year;

     (4) As soon as available and in any event within thirty (30) days of the filing
thereof, copies of Borrower’s federal income tax returns if requested;

     (5) As soon as available and in any event by the fifteenth (15th) day of
each calendar month: (a) a collateral and loan status report on forms provided by the Agent
(or such other form approved by Agent); (b) an aging of the Borrower’s Contracts on a
summary basis; (c) a total of Contracts where the Contract Debtor is the subject to an
insolvency proceeding; (d) a report of Net Charge-Offs; (e) on a monthly basis, on or before
the 5th day of the following month, a lot status report which shall include a
summary of accounts in bankruptcy, repossessions, write-offs and the wholesale value of
repossessed vehicles; (f) such other reports as to the Collateral of the Borrower as the
Agent shall reasonably request from time to time; and (g) a certificate of an officer of the
Borrower certifying as to the accuracy and completeness of the foregoing. If any of the
Borrower’s records or reports of the Collateral are prepared by an accounting service or
other agent, the Borrower hereby
authorizes such service or agent to deliver such records, reports, and related
documents to the Agent.

     (6) Management letters. Promptly upon receipt thereof, copies of any reports submitted
to the Borrower or any Subsidiary by independent certified public accountants in connection
with the annual examination of the financial statements of the Borrower or any Subsidiary
made by such accountants;

     (7) Certificate of no Default. In connection with the delivery of financial statements
under Section 5.08(1), the Borrower shall deliver a certificate signed by a
responsible officer of the Borrower, (a) certifying that to the best of his knowledge no
Default or Event of Default has occurred and is continuing, or if a Default or Event of
Default has occurred and is continuing, a statement as to the nature thereof and the action

28

 

which is proposed to be taken with respect thereto; and (b) with computations demonstrating
compliance with the covenants contained in Article 7;

     (8) Accountant’s Report. Simultaneously with the delivery of the annual financial
statements referred to in Section 5.08(2), a certificate of the independent public
accountants who audited such statements to the effect that, in making the examination
necessary for the audit of such statements, they have obtained no knowledge of any condition
or event which constitutes a Default or Event of Default, or if such accountants shall have
obtained knowledge of any such condition or event, specifying in such certificate each such
condition or event of which they have knowledge and the nature and status thereof;

     (9) Notice of Litigation. Promptly after the commencement thereof, notice of all
actions, suits, and proceedings before any court or governmental department, commission,
board, bureau, agency, or instrumentality, domestic or foreign, affecting the Borrower or
any Subsidiary which, if determined adversely to the Borrower or such Subsidiary, could
reasonably be expected to have a material adverse effect on the financial condition,
properties, or operations of the Borrower or such Subsidiary;

     (10) Notice of Defaults and Events of Default. As soon as possible and in any event
within five (5) days after the occurrence of each Default or Event of Default, a written
notice setting forth the details of such Default or Event of Default and the action which is
proposed to be taken by the Borrower with respect thereto;

     (11) ERISA reports. As soon as possible, and in any event within thirty (30) days
after the Borrower knows or has reason to know that any circumstances exist that constitute
grounds entitling the PBGC to institute proceedings to terminate a Plan subject to ERISA
with respect to the Borrower or any Commonly Controlled Entity, and promptly but in any
event within five (5) Business Days of receipt by the Borrower or any Commonly Controlled
Entity of notice that the PBGC intends to terminate a Plan or appoint a trustee to
administer the same, and promptly but in any event within five (5) Business Days of the
receipt of notice concerning the imposition of withdrawal liability with respect to the
Borrower or any Commonly Controlled Entity, the Borrower will deliver to Agent a certificate
of a
responsible officer of the Borrower setting forth all relevant details and the action
which the Borrower proposes to take with respect thereto;

     (12) Reports to other creditors. Promptly after the furnishing thereof, copies of any
statement or report furnished to any other party to whom Borrower owes $2,000,000 or more,
pursuant to the terms of any indenture, loan, credit, or similar agreement and not otherwise
required to be furnished to the Bank pursuant to any other clause of this Section
5.08;

     (13) General information. Such other information respecting the condition or
operations, financial or otherwise, of the Borrower, Guarantors or any Subsidiary as Agent
may from time to time reasonably request.

29

 

     Section 5.09. Environment. Be and remain, and cause each Subsidiary to be and remain, in
compliance with the provisions of all material federal, state, and local environmental, health, and
safety laws, codes and ordinances, and all rules and regulations issued thereunder; notify Agent
immediately of any notice of a hazardous discharge or environmental complaint received from any
governmental agency or any other party which is likely to have a Material Adverse Effect; notify
Agent immediately of any hazardous discharge from or affecting its premises which is likely to
have a Material Adverse Effect; immediately contain and remove the same, in compliance with all
applicable laws; promptly pay any fine or penalty assessed in connection therewith; permit Agent to
inspect the premises, to conduct tests thereon, and to inspect all books, correspondence, and
records pertaining thereto; and at Agent’s request, and at the Borrower’s expense, provide a report
of a qualified environmental engineer, satisfactory in scope, form, and content to Agent, and such
other and further assurances reasonably satisfactory to Agent that the condition has been
corrected.

     Section 5.10. Operating Account. Maintain its primary operating account with Agent.

     Section 5.11. Loss Reserves. If necessary, maintain loss reserves in an amount, calculated
as of the last day of each month, which is in accordance with GAAP.

     Section 5.12. Charge-off policy. Maintain, in a manner reasonably satisfactory to the Agent, a
policy for charging off the unpaid balance of its delinquent Vehicle Contracts. Without limiting
the generality of the foregoing, the Borrower’s policy shall provide, as a minimum, that on the
last day of each month the Borrower shall charge off the unpaid balance of all Vehicle Contracts
with respect to which (a) any payment due thereunder is one hundred eighty (180) or more days
contractually delinquent or (b) the Borrower has repossessed the Vehicle which secured the Vehicle
Contract more than thirty (30) days prior thereto.

     Section 5.13. Perfection and Protection of Security Interest.

               (a) The Borrower shall, at its expense, perform all steps requested by the Agent at any time
to perfect, maintain, protect, and enforce the Agent’s Liens in the Collateral, including, without
limitation: (i) executing and filing financing or continuation statements, and amendments thereof,
in form and substance satisfactory to the Agent; (ii) upon Agent’s request, delivering to the
Agent, at the request of Agent, the originals of all Instruments, documents, and
chattel paper, and all other Collateral of which the Agent determines it should have physical
possession in order to perfect and protect the Agent’s security interest therein, duly pledged,
endorsed or assigned to the Agent without restriction; (iii) placing notations on the Borrower’s
books of account to disclose the Agent’s security interest; and (iv) taking such other steps as are
deemed necessary or desirable by the Agent to maintain and protect the Agent’s Liens in the
Collateral. To the extent permitted by applicable law, the Agent may file, without the Borrower’s
signature, one or more financing statements disclosing the Agent’s Liens in the Collateral. The
Borrower agrees that a carbon, photographic, photostatic, or other reproduction of this Agreement
or of a financing statement is sufficient as a financing statement.

               (b) Except with respect to Collateral delivered to the Agent pursuant to this Section
5.13, if requested by the Agent, the Borrower shall immediately following the execution

30

 

or
receipt of a Contract, stamp on the note(s) and/or chattel paper the following words (or similar
language in all respects satisfactory to Agent): “This document has been pledged to Bank of
Arkansas, N.A., as agent and may not be further assigned.” With respect to note(s) and/or chattel
paper in effect on the Closing Date, all such note(s) and/or chattel paper shall be similarly
stamped within forty-five (45) days of such request.

     Section 5.14. Title to, Liens on, and Sale of Collateral. The Borrower represents and warrants
to the Agent and the Banks that (except for any Collateral that has not been paid for, but such
obligation is included in accounts payable or accrued liabilities): (a) all of the Collateral is
and will continue to be owned solely by the Borrower free and clear of all Liens whatsoever except
for the Agent’s Liens and Permitted Liens; (b) the Agent’s Liens in the Collateral will not be
subject to any prior Lien; (c) the Borrower will store and maintain the Collateral with all
reasonable care; and (d) the Borrower will not, without the Agent’s prior written approval, sell,
or dispose of or permit the sale or disposition of any of the Collateral other than in the ordinary
course of business. The inclusion of proceeds in the Collateral shall not be deemed to constitute
the Agent’s consent to any sale or other disposition of the Collateral except as expressly
permitted herein.

     Section 5.15. Collection of Contracts; Payments.

               (a) At the election of Agent, the Borrower shall collect all Accounts, shall receive all
payments relating to Accounts, and shall promptly deposit all such collections into Payment
Accounts established for the account of the Borrower at banks acceptable to the Borrower and the
Agent, and subject to the provisions of a Blocked Account Agreement acceptable to Borrower and
Agent. All collections relating to Accounts received in any such Payment Account or directly by
the Borrower or the Bank, and all funds in any Payment Account or other account to which such
collections are deposited, shall be the sole property of the Bank and subject to the Bank’s sole
control. After an occurrence of any Event of Default and following any applicable notice and cure
period the Bank may, at any time, notify obligors that the Accounts have been assigned to the Bank
and of the Security Interest therein, and may collect them directly and charge the collection costs
and expenses to the Borrower’s loan account. The Borrower, at Agent’s request, shall execute and
deliver to the Bank such documents as the Bank shall require to grant the Bank access to any post
office box in which collections of Accounts are received.

               (b) If sales of Inventory are made for cash, the Borrower shall immediately deposit such
identical checks, cash, or other forms of payment which the Borrower receives into the Payment
Accounts.

               (c) All payments received by the Banks on account of Accounts or as Proceeds of other
Collateral will be the Banks’ sole property and will be credited to the Borrower’s loan account
(conditional upon final collection) immediately upon receipt.

               (d) In the event the Borrower repays all of the Obligations upon the termination of this
Agreement, any additional payments received by the Bank on account of the Accounts or proceeds of
other collateral shall promptly be returned to the Borrower or deposited into an account for the
benefit of the Borrower.

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Article 6

NEGATIVE COVENANTS

     So long as any Note shall remain unpaid or any Bank shall have any Commitment under this
Agreement, the Borrower will not:

     Section 6.01. Liens. Create, incur, assume, or suffer to exist, or permit any Subsidiary to
create, incur, assume, or suffer to exist, any Lien, upon or with respect to any of its properties,
now owned or hereafter acquired, except:

     (1) Liens in favor of all the Banks pursuant to the Security Agreement;

     (2) Liens in favor of Bank of Oklahoma, N.A. in connection with its Loan to ACM and TCM
whereby the Collateral is pledged as additional collateral.

     (3) Liens for taxes or assessments or other government charges or levies if not yet due
and payable, or if due and payable, if they are being contested in good faith by appropriate
proceedings and for which appropriate reserves are maintained;

     (4) Liens imposed by law, such as mechanics’, materialmen’s, landlords’,
warehousemen’s, and carriers’ Liens, and other similar Liens, securing obligations incurred
in the ordinary course of business which are not past due for more than sixty (60) days or
which are being contested in good faith by appropriate proceedings and for which appropriate
reserves have been established;

     (5) Liens under workers’ compensation, unemployment insurance, Social Security, or
similar legislation;

     (6) Liens, deposits, or pledges to secure the performance of bids, tenders, contracts
(other than contracts for the payment of money), leases (permitted under the terms of this
Agreement), public or statutory obligations, surety, stay, appeal, indemnity,
performance or other similar bonds, or similar obligations arising in the ordinary
course of business;

     (7) Judgment and other similar Liens arising in connection with court proceedings ,
provided the execution or other enforcement of such Liens is effectively stayed and the
claims secured thereby are being actively contested in good faith and by appropriate
proceedings or the amount of such judgement or similar lien is not reasonably likely to have
a Material Adverse Effect;

     (8) Easements, rights-of-way, restrictions, and other similar encumbrances which, in
the aggregate, do not materially interfere with the occupation, use, and enjoyment by the

32

 

Borrower or any Subsidiary of the property or assets encumbered thereby in the normal course
of its business or materially impair the value of the property subject thereto; and

     (9) Purchase-money Liens on any property hereafter acquired or the assumption of any
Lien on property existing at the time of such acquisition (and not created in contemplation
of such acquisition), or a Lien incurred in connection with any conditional sale or other
title retention agreement or a Capital Lease; provided that

     (a) Any property subject to any of the foregoing is acquired by the Borrower or
any Subsidiary in the ordinary course of its respective business and the Lien on any
such property attaches to such asset concurrently or within ninety (90) days after
the acquisition thereof;

     (b) The obligation secured by any Lien so created, assumed, or existing shall
not exceed one hundred percent (100%) of the lesser of the cost or the fair market
value as of the time of acquisition of the property covered thereby to the Borrower
or Subsidiary acquiring the same;

     (c) Each such Lien shall attach only to the property so acquired and fixed
improvements thereon (if applicable); and

     (d) The Debt secured by such Lien is permitted by the provisions of Section
6.02.

     Section 6.02. Debt. Create, incur, assume, or suffer to exist, or permit any Subsidiary to
create, incur, assume, or suffer to exist, any Debt, except:

     (1) Debt of the Borrower under this Agreement or the Notes;

     (2) Debt of the Borrower subordinated on terms satisfactory to the Majority Banks to
the Borrower’s obligations under this Agreement and the Notes;

     (3) Debt of the Borrower to ACM and ACM-Texas;

     (4) Accounts payable to trade creditors for goods or services and current operating
liabilities (other than for borrowed money) in each case incurred in the ordinary course of
business , and paid within the specified time (or if no specified time exists, within a
reasonable time), unless contested in good faith and by appropriate proceedings or unless
the amount is less than $50,000.00; and

     (5) Debt of the Borrower or any Subsidiary secured by purchase-money Liens permitted by
Section 6.01(8), not to exceed $250,000 in the aggregate per given fiscal year.

     Section 6.03. Mergers, Etc. Wind up, liquidate or dissolve itself, reorganize, merge or
consolidate with or into, or convey, sell, assign, transfer, lease, or otherwise dispose of
(whether in

33

 

one transaction or in a series of transactions) all or substantially all of its assets
(whether now owned or hereafter acquired) to any Person, or acquire all or substantially all of the
assets or the business of any Person in excess of $500,000 in a given fiscal year, or permit any
Subsidiary to do so, except that (1) any Subsidiary may merge into or transfer assets to the
Borrower and (2) any subsidiary may merge into or consolidate with or transfer assets to any other
Subsidiary.

     Section 6.04. Leases. Create, incur, assume, or suffer to exist, or permit any Subsidiary to
create, incur, assume, or suffer to exist, any obligation as lessee for the rental or hire of any
real or personal property, except (1) Capital Leases permitted by Section 6.01(8); (2)
leases existing on the date of this Agreement and any extensions or renewals thereof; (3) leases
(other than Capital Leases and the leases described in (5) below) which do not in the aggregate
require the Borrower and its Subsidiaries on a combined basis to make payments (including taxes,
insurance, maintenance, and similar expenses which the Borrower or any Subsidiary is required to
pay under the terms of any lease) in any fiscal year of the Borrower in excess of Two Hundred Fifty
Thousand Dollars ($250,000); (4) leases between the Borrower and any Subsidiary or between any
Subsidiaries; and (5) leases incurred in the ordinary course of business for the rental of
dealership locations for an amount not to exceed the fair value of the leased property.

     Section 6.05. Sale and Leaseback. Sell, transfer, or otherwise dispose of, or permit any
Subsidiary to sell, transfer, or otherwise dispose of, any material real or personal property to
any Person and thereafter directly or indirectly lease back the same or similar property.

     Section 6.06. Dividends. Declare or pay any dividends; or purchase, redeem, retire, or
otherwise acquire for value any of its capital stock now or hereafter outstanding, or make any
distribution of assets to its stockholders as such whether in cash, assets, or in obligations of
the Borrower; or allocate or otherwise set apart any sum for the payment of any dividend or
distribution on, or for the purchase, redemption, or retirement of any shares of its capital stock;
or make any other distribution by reduction of capital or otherwise in respect of any shares of its
capital stock; or permit any of its Subsidiaries to purchase or otherwise acquire for value any
stock of the Borrower or another Subsidiary, except that the Borrower may repurchase employee-held
stock in an aggregate amount not to exceed $150,000 per year, subject to a higher amount approved
in writing by the Majority Banks.

     Section 6.07. Sale of Assets. Sell, lease, assign, transfer, or otherwise dispose of, or
permit any Subsidiary to sell, lease, assign, transfer, or otherwise dispose of, any material
portion of its now
owned or hereafter acquired assets (including, without limitation, shares of stock and
indebtedness of Subsidiaries, receivables, and leasehold interests), except: (1) inventory disposed
of in the ordinary course of business; (2) the sale or other disposition of assets no longer used
or useful in the conduct of its business; or (3) the sale and purchase of Contracts between
Borrower, ACM, and TCM.

     Section 6.08. Investments. Make, or permit any Subsidiary to make, any loan or advance to any
Person, or purchase or otherwise acquire, or permit any Subsidiary to purchase or otherwise
acquire, any capital stock, assets, obligations, or other securities of, make any capital
contribution to, or otherwise invest in or acquire any interest in any Person, or participate as a
partner or joint venturer with any other Person, except: (1) direct obligations of the United
States or any agency

34

 

thereof with maturities of one year or less from the date of acquisition; (2)
commercial paper of a domestic issuer rated at least “A-1” by Standard & Poor’s Corporation or
“P-1” by Moody’s Investors Service, Inc.; (3) certificates of deposit with maturities of one year
or less from the date of acquisition issued by any commercial bank having capital and surplus in
excess of Two Hundred Fifty Thousand Dollars ($250,000); (4) stock, obligations, or securities
received in settlement of debts (created in the ordinary course of business) owing to the Borrower
or any Subsidiary; (5) loans to employees of the Borrower up to $250,000 in the aggregate in any
fiscal year; (6) property to be used in and acquired in the ordinary course of business; (7)
purchase of Contracts in the ordinary course of business; and (8) assets of Borrower’s Contract
Debtors.

     Section 6.09. Guaranties, Etc. Assume, guarantee, endorse, or otherwise be or become directly
or contingently responsible or liable, or permit any Subsidiary to assume, guarantee, endorse, or
otherwise be or become directly or contingently responsible or liable (including, but not limited
to, an agreement to purchase any obligation, stock, assets, goods, or services, or to supply or
advance any funds, assets, goods, or services, or an agreement to maintain or cause such Person to
maintain a minimum working capital or net worth or otherwise to assure the creditors of any Person
against loss), for obligations of any other Person, except guaranties (i) by endorsement of
negotiable instruments for deposit or collection or similar transactions in the ordinary course of
business; and (ii) in favor of the Agent or Banks.

     Section 6.10. Transactions With Affiliates. Except as permitted by Agent in writing, the
Borrower shall not sell, transfer, distribute, or pay any money or Property, including, but not
limited to, any management fees or expenses of any nature, to any Affiliate, or lend or advance
money or Property to any Affiliate, or invest in (by capital contribution or otherwise) or purchase
or repurchase any stock or indebtedness, or any Property, of any Affiliate, or become liable on any
Guaranty of the indebtedness, dividends, or other obligations of any Affiliate. Notwithstanding
the foregoing, the Borrower may (i) reimburse an affiliate the actual cost of expenses paid or
assets acquired on the Borrowers behalf, (ii) pay ACM-Texas amounts due pursuant to the ACM-Texas
Sub-Debt as permitted in the ACM-Texas Sub-Debt Subordination Agreement, (iii) pay ACM amounts
due pursuant to the ACM Sub-Debt as permitted in the ACM Sub-Debt Subordination Agreement, (iv) pay
ACM-Texas a management fee not to exceed $100,000 per fiscal year, (v) purchase contracts from ACM
and TCM, sell inventory to ACM and TCM, charge ACM a management fee and pay ACM rent and other
office expenses, and (vi) engage in other transactions with Affiliates in the ordinary course of
business, in amounts and upon terms fully disclosed to the Agent, and no less favorable to the
Borrower than would be obtained in a comparable arm’s-length transaction with a third party who is
not an Affiliate.

     Section 6.11. New Subsidiaries. Directly or indirectly, organize or acquire any Subsidiary.

     Section 6.12. Reporting Methodology. Without the Agent’s prior written consent thereto, the
Borrower shall not amend or modify the methodology employed by the Borrower in preparing its
accounting and financial reports relating to the presentation of (i) the delinquency of Vehicle
Contracts, (ii) the repossession of Vehicles, and (iii) the charge-off of delinquent Vehicle
Contracts from the methodology employed by the Borrower as of the date of this Agreement so as to
materially

35

 

change the consistency of the information with respect to such items, from time to time,
provided to Agent.

     Section 6.13. Contract Forms. The Borrower shall not use or acquire in its business Contracts
which are not on the printed forms previously approved in writing by the Agent and the Borrower
shall not change or vary the printed forms of such Contracts without the Agent’s prior written
consent (which shall not be withheld unreasonably), unless such change or variation is required by
any requirement of law or such change is minor in nature and has been recommended by counsel. The
Agent may reasonably withhold its consent until the Agent receives a satisfactory opinion of the
Borrower’s counsel regarding compliance of the revised form of Contract with any requirement of law
subject to such opinion. Based upon such opinion, Agent consents to the forms attached as
Exhibit “I” attached hereto.

     Section 6.14. Credit Guidelines. The Borrower shall not make any changes in its Credit
Guidelines without the Agent’s prior written consent which the Agent may withhold in its sole and
absolute discretion. The Borrower shall not purchase or otherwise acquire Contracts which do not
comply with the Credit Guidelines.

     Section 6.15. Service Contracts. To the extent that the Borrower offers so-called “service
contracts,” the Borrower shall ensure that the cost of such service contracts are disclosed to the
Contract Debtors and such service contracts are in compliance with all applicable consumer credit
laws, including any and all special laws relating thereto.

     Section 6.16. Purchase of Vehicle Note Receivables. Borrower shall not purchase Vehicle
Contracts from any Person except ACM.

Article 7

FINANCIAL COVENANTS

     The following financial covenants shall be calculated on a consolidated basis. So long as any
Note shall remain unpaid or any Bank shall have any Commitment under this Agreement:

     Section 7.01. Leverage Ratio. The Borrower will at all times, calculated as of the last day
of each month, maintain a ratio of Funded Debt to EBITDA for the trailing twelve (12) month period
of no greater than 2.50 to 1.00.

     Section 7.02. Fixed Charge Coverage Ratio. Borrower will not permit the ratio of (a) EBITDA
to (b) Fixed Charges to be less than 1.50 to 1.00 as of the end of each month for the
trailing six (6) month period.

     Section 7.03. Minimum Tangible Net Worth. Borrower shall maintain at all times a minimum
Adjusted Tangible Net Worth as of the last day of each fiscal quarter equal to or greater than the
sum of (i) the greater of (A) eighty-five percent (85%) of the Minimum Adjusted Tangible Net Worth
as of July 31, 2004 and (B) $57,000,000, plus (ii) seventy-five percent (75%) of positive

36

 

quarterly Net Income (after July 31, 2004) and (iii) one hundred percent (100%) of any subsequent
equity issuances (after July 31, 2004).

Article 8

EVENTS OF DEFAULT

     Section 8.01. Events of Default. If any of the following events shall occur, and continue
uncured for a period of thirty (30) days with respect to subsections (2), (3), (4), (7), (8), (10)
and (11), then they shall be deemed an Event of Default:

     (1) The Borrower shall fail to pay when due (subject to a five (5) Business Day grace
period) the principal of, or interest on, any Note, or any amount of a commitment or other
fee, as and when due and payable;

     (2) Any representation or warranty made or deemed made by the Borrower in this
Agreement or the Security Agreement or by the Guarantor in the Guaranty or which is
contained in any certificate, document, opinion, or financial or other statement furnished
at any time under or in connection with any Loan Document shall prove to have been
incorrect, incomplete, or misleading in any material respect on or as of the date made or
deemed made;

     (3) The Borrower or the Guarantor shall fail to perform or observe any term, covenant,
or agreement contained in Articles 5, 6, or 7 hereof;

     (4) Excluding the ACM-Texas Sub-Debt, ACM Sub-Debt and other debt less than $2,000,000,
the Borrower or any of its Subsidiaries shall (a) fail to pay any indebtedness for borrowed
money (other than the Notes) of the Borrower or such Subsidiary , as the case may be, or any
interest or premium thereon, when due (whether by scheduled maturity, required prepayment,
acceleration, demand, or otherwise); or (b) fail to perform or observe any term, covenant,
or condition on its part to be performed or observed under any agreement or instrument
relating to any such indebtedness, when required to be performed or observed, if the effect
of such failure to perform or observe is to accelerate, or to permit the acceleration of
after the giving of notice or passage of time, or both, the maturity of such indebtedness,
whether or not such indebtedness shall be declared to be due and payable, or required to be
prepaid (other than by a regularly scheduled required prepayment), prior to the stated
maturity thereof;

     (5) The Borrower, Guarantor or any of their Subsidiaries (a) shall generally not pay,
or shall be unable to pay, or shall admit in writing its inability to pay its debts as such
debts become due; or (b) shall make an assignment for the benefit of creditors, or petition
or apply to any tribunal for the appointment of a custodian, receiver, or trustee for it or
a substantial part of its assets; or (c) shall commence any proceeding under any bankruptcy,
reorganization, arrangement, readjustment of debt, dissolution, or liquidation law or
statute of any jurisdiction, whether now or hereafter in effect; or (d) shall have had any
such petition or application filed or any such proceeding commenced against it in which an
order for relief

37

 

is entered or an adjudication or appointment is made, and which remains
undismissed for a period of sixty (60) days or more; or (e) shall take any corporate action
indicating its consent to, approval of, or acquiescence in any such petition, application,
proceeding, or order for relief or the appointment of a custodian, receiver, or trustee for
all or any substantial part of its properties; or (f) shall suffer any such custodianship,
receivership, or trusteeship to continue undischarged for a period of sixty (60) days or
more;

     (6) One or more judgments, decrees, or orders for the payment of money in excess of
Five Hundred Thousand Dollars ($500,000) in the aggregate shall be rendered against the
Borrower or any of its Subsidiaries, and such judgments, decrees, or orders shall continue
unsatisfied and in effect for a period of sixty (60) consecutive days without being vacated,
discharged, satisfied, or stayed or bonded pending appeal;

     (7) The Security Agreement shall at any time after its execution and delivery and for
any reason cease (a) to create a valid and perfected first priority security interest in and
to the property purported to be subject to such Security Agreement; or (b) to be in full
force and effect or shall be declared null and void, or the validity or enforceability
thereof shall be contested by the Borrower, or the Borrower shall deny it has any further
liability or obligation under this Security Agreement, or the Borrower shall fail to perform
any of its obligations under the Security Agreement;

     (8) The Guaranty shall at any time after its execution and delivery and for any reason
cease to be in full force and effect or shall be declared null and void, or the validity or
enforceability thereof shall be contested by the Guarantor or the Guarantor shall deny it
has any further liability or obligation under, or shall fail to perform its obligations
under, the Guaranty;

     (9) Any of the following events shall occur or exist with respect to the Borrower and
any Commonly Controlled Entity under ERISA: any Reportable Event shall occur; complete or
partial withdrawal from any Multiemployer Plan shall take place; any Prohibited Transaction
shall occur; a notice of intent to terminate a Plan shall be filed, or a Plan shall be
terminated; or circumstances shall exist which constitute grounds entitling the PBGC to
institute proceedings to terminate a Plan, or the PBGC shall institute such proceedings; and
in each case above, such event or condition, together with all other events or conditions,
if any, is likely to subject the Borrower to any tax, penalty, or other liability which in
the aggregate is likely to exceed Five Hundred Thousand Dollars ($500,000); or

     (10) If any Bank receives its first notice of a hazardous discharge or an environmental
complaint from a source other than the Borrower (such Bank to immediately notify the Agent
thereof) and such Bank does not receive notice (which may be given in oral form, provided
same is followed with all due dispatch by written notice given to such Bank and the Agent by
Certified Mail, Return Receipt Requested) of such hazardous discharge or environmental
complaint from the Borrower within twenty-four (24) hours of the time such Bank first
receives said notice from a source other than the Borrower and the impact of such hazardous
discharge or complaint is likely to have a Material Adverse Effect on the

38

 

operations of the
Borrower; or if any federal, state, or local agency asserts or creates a material Lien upon
any or all of the assets, equipment, property, leaseholds or other facilities of the
Borrower by reason of the occurrence of a hazardous discharge or an environmental complaint
which is reasonably likely to cause a Material Adverse Effect; or if any federal, state, or
local agency asserts a claim against the Borrower and/or its assets, equipment, property,
leaseholds, or other facilities for damages or cleanup costs relating to a hazardous
discharge or an environmental complaint which is reasonably likely to cause a Material
Adverse Effect; provided, however, that such claim shall not constitute a default if, within
five (5) Business Days of the occurrence giving rise to the claim (a) the Borrower can prove
to the satisfaction of the Majority Banks that the Borrower has commenced and is diligently
pursuing either: (i) a cure or correction of the event which constitutes the basis for the
claim, and continues diligently to pursue such cure or correction to completion or (ii)
proceedings for an injunction, a restraining order or other appropriate emergency relief
preventing such agency or agencies from asserting such claim, which relief is granted within
ten (10) Business Days of the occurrence giving rise to the claim and the injunction, order,
or emergency relief is not thereafter resolved or reversed on appeal; and (b) in either of
the foregoing events, the Borrower has posted a bond, letter of credit, or other security
satisfactory in form, substance, and amount to both the Majority Banks and the agency or
entity asserting the claim to secure the proper and complete cure or correction of the event
which constitutes the basis for the claim.

     (11) The Advance Rate Adjustment Percent should exceed 35% for two consecutive months.

     (12) A default should occur under the Revolving Credit Agreement between ACM, TCM, and
Bank of Oklahoma, N.A., dated of even date herewith.

     (13) The Guarantor should sell all or substantially all of its interest in ACM or TCM.

     (14) Any Change in Control of Borrower occurs without Agent’s prior written consent at
its discretion. For purposes hereof, a “Change in Control” means any Person or Persons
acting in concert shall have acquired by contract or otherwise that, upon consummation, will
result in its or their acquisition of the power to direct or control, directly or
indirectly, the management or policies of the Borrower.

     (15) A material adverse change occurs with respect to the financial condition of the
Guarantor.

     Upon the occurrence of any Event of Default, and following a written notice and a thirty (30)
day cure period as to the foregoing sections other than 8.01(1), ; the Agent shall at the request
of, or may, with the consent of, the Majority Banks, by notice to the Borrower, (1) declare the
Banks’ obligation to make Loans to be terminated, whereupon the same shall forthwith terminate; and
(2) declare the outstanding Notes, all interest thereon, and all other amounts payable under this
Agreement to be forthwith due and payable, whereupon the Notes, all such interest, and all such

39

 

amounts shall become and be forthwith due and payable, without presentment, demand, protest, or
further notice of any kind, all of which are hereby expressly waived by the Borrower; and each Bank
is hereby authorized at any time and from time to time, without notice to the Borrower (any such
notice being expressly waived by the Borrower), to set off and apply any and all deposits (general
or special, time or demand, provisional or final) at any time held and other indebtedness at any
time owing by such Bank to or for the credit or the account of the Borrower against any and all of
the obligations of the Borrower now or hereafter existing under this Agreement or the Bank’s Note
or any other Loan Document, irrespective of whether or not the Agent or such Bank shall have made
any demand under this Agreement or such Bank’s Note or such other Loan Document and although such
obligations may be unmatured. Each Bank agrees promptly to notify the Borrower (with a copy to the
Agent) after any such setoff and application, provided that the failure to give such notice shall
not affect the validity of such setoff and application. The rights of each Bank under this
Section 8.01 are in addition to other rights and remedies (including, without limitation,
other rights of setoff) which each such Bank may have.

Article 9

AGENCY PROVISIONS

     Section 9.01. Authorization and Action. Each Bank hereby irrevocably appoints and authorizes
the Agent to take such action as agent on its behalf and to exercise such powers under this
Agreement as are delegated to the Agent by the terms hereof, together with such powers as are
reasonably incidental thereto. The duties of the Agent shall be mechanical and administrative in
nature and the Agent shall not by reason of this Agreement be a trustee or fiduciary for any Bank.
The Agent shall have no duties or responsibilities except those expressly set forth herein. As to
any matters not expressly provided for by this Agreement (including, without limitation,
enforcement or collection of the Notes), the Agent shall not be required to exercise any discretion
or take any action, but shall be required to act or to refrain from acting (and shall be fully
protected in so acting or so refraining from acting) upon the instructions of the Majority Banks,
and such instructions shall be binding upon all Banks and all holders of Notes; provided, however,
that the Agent shall not be required to take any action which exposes the Agent to personal
liability or which is contrary to this Agreement or applicable law.

     Section 9.02. Liability of Agent. Neither the Agent nor any of its directors, officers,
agents or employees shall be liable for any action taken or omitted to be taken by it or them under
or in connection with this Agreement in the absence of its or their own gross negligence or willful
misconduct. Without limitation of the generality of the foregoing, the Agent (1) may treat the
payee of any Note as the holder thereof until the Agent receives written notice of the assignment
or transfer thereof signed by such payee and in form satisfactory to the Agent; (2) may consult
with legal
counsel (including counsel for the Borrower), independent public accountants and other experts
selected by it and shall not be liable for any action taken or omitted to be taken in good faith by
it in accordance with the advice of such counsel, accountants, or experts; (3) makes no warranty or
representation to any Bank and shall not be responsible to any Bank for any statements, warranties,
or representations made in or in connection with this Agreement; (4) shall not have any duty to
ascertain or to inquire as to the performance or observance of any of the terms, covenants, or

40

 

conditions of this Agreement on the part of the Borrower, or to inspect the property (including the
books and records) of the Borrower; (5) shall not be responsible to any Bank for the due execution,
legality, validity, enforceability, genuineness, perfection, sufficiency, or value of this
Agreement or any other instrument or document furnished pursuant thereto; and (6) shall incur no
liability under or in respect of this Agreement by acting upon any notice, consent, certificate, or
other instrument or writing (which may be sent by telegram, telex, or facsimile transmission)
believed by it to be genuine and signed or sent by the proper party or parties.

     Section 9.03. Rights of Agent as a Bank. With respect to its Commitment, the Loans made by it
and the Note issued to it, the Agent shall have the same rights and powers under this Agreement as
any other Bank and may exercise the same as though it were not the Agent; and the term “Bank” or
“Banks” shall, unless otherwise expressly indicated, include the Agent in its individual capacity.
The Agent and its Affiliates may accept deposits from, lend money to, act as trustee under
indentures of, and generally engage in any kind of business with, the Borrower, any of its
Subsidiaries and any Person who may do business with or own securities of the Borrower or any
Subsidiary, all as if the Agent were not the Agent and without any duty to account therefor to the
Banks.

     Section 9.04. Independent Credit Decisions. Each Bank acknowledges that it has, independently
and without reliance upon the Agent or any other Bank and based on such documents and information
as it has deemed appropriate, made its own credit analysis and decision to enter into this
Agreement. Each Bank also acknowledges that it will, independently and without reliance upon the
Agent or any other Bank and based on such documents and information as it shall deem appropriate at
the time, continue to make its own credit decisions in taking or not taking action under this
Agreement. Except for notices, reports and other documents and information expressly required to
be furnished to the Banks by the Agent hereunder, the Agent shall have no duty or responsibility to
provide any Bank with any credit or other information concerning the affairs, financial condition
or business of the Borrower or any of its Subsidiaries (or any of their Affiliates) which may come
into the possession of the Agent or any of its Affiliates.

     Section 9.05. Indemnification. The Banks agree to indemnify the Agent (to the extent not
reimbursed by the Borrower), ratably according to the respective amounts of their Commitments, from
and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, 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 action taken or omitted by the Agent under this Agreement, provided that no Bank shall be
liable for any portion of any of the foregoing resulting from the Agent’s gross negligence or
willful misconduct. Without limitation of the foregoing, each Bank agrees to reimburse the Agent
(to the extent not reimbursed by the Borrower) promptly upon demand for its ratable share of any
out-of-pocket expenses (including counsel fees) incurred by the Agent in connection with the
preparation,
administration, or enforcement of, or legal advice in respect of rights or responsibilities
under, this Agreement.

     Section 9.06. Successor Agent. The Agent may resign at any time by giving at least sixty (60)
days’ prior written notice thereof to the Banks and the Borrower and may be removed at any time
with or without cause by the Majority Banks. Upon any such resignation or removal, the

41

 

Majority
Banks shall have the right to appoint a successor Agent. If no successor Agent shall have been so
appointed by the Majority Banks, and shall have accepted such appointment, within thirty (30) days
after the retiring Agent’s giving of notice of resignation or the Majority Banks’ removal of the
retiring Agent, then the retiring Agent may, on behalf of the Banks, appoint a successor Agent,
which shall be a commercial bank organized under the laws of the United States of America or of any
State thereof and having a combined capital and surplus of at least Fifty Million Dollars
($50,000,000). Upon the acceptance of any appointment as Agent hereunder by a successor Agent,
such successor Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Agent, and the retiring Agent shall be discharged from its
duties and obligations under this Agreement. After any retiring Agent’s resignation or removal
hereunder as Agent, the provisions of this Article 9 shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Agent under this Agreement.

     Section 9.07. Sharing of Payments, Etc. If any Bank shall obtain any payment (whether
voluntary, involuntary, through the exercise of any right of setoff, or otherwise) on account of
the Note held by it in excess of its ratable share of payments on account of the Notes obtained by
all the Banks, such Bank shall purchase from the other Banks such participations in the Notes held
by them as shall be necessary to cause such purchasing Bank to share the excess payment ratably
with each of the other Banks, provided, however, that if all or any portion of such excess payment
is thereafter recovered from such purchasing Bank, such purchase from each Bank shall be rescinded
and each Bank shall repay to the purchasing Bank the purchase price to the extent of such recovery
together with an amount equal to such Bank’s ratable share (according to the proportion of (1) the
amount of such Bank’s required repayment to (2) the total amount so recovered from the purchasing
Bank) of any interest or other amount paid or payable by the purchasing Bank in respect of the
total amount so recovered. The Borrower agrees that any Bank so purchasing a participation from
another Bank pursuant to this Section 9.07 may, to the fullest extent permitted by law,
exercise all its rights of payment (including the right of setoff) with respect to such
participation as fully as if such Bank were the direct creditor of the Borrower in the amount of
such participation.

     Section 9.08. Reservation of Rights. Bank of Arkansas, N.A. shall be entitled to purchase
the interest of any other Bank at any time at its discretion, which shall be accomplished by
delivery of notification of such intent by Bank of Arkansas, N.A. to the selling Bank together with
payment of any outstanding Loans from the selling Bank, whereupon the selling Bank shall endorse
and deliver its note(s) to Bank of Arkansas, N.A.

Article 10

MISCELLANEOUS

     Section 10.01. Amendments, Etc. No amendment, modification, termination, or waiver of any
provision of any Loan Document to which the Borrower is a party, nor consent to any departure by
the Borrower from any Loan Document to which it is a party, shall in any event be effective unless
the same shall be in writing and signed by 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, that no amendment, waiver or consent shall, unless in writing and signed by all

42

 

the Banks, do any of the following: (1) waive any of the conditions precedent specified in
Article 3; (2) increase the Commitments of the Banks or subject the Banks to any additional
obligations; (3) reduce the principal of, or interest on, the Notes or any fees hereunder; (4)
postpone any date fixed for any payment of principal of, or interest on, the Notes or any fees
hereunder; (5) change the percentage of the Commitments or of the aggregate unpaid principal amount
of the Notes or the number of Banks which shall be required for the Banks or any of them to take
action hereunder; or amend, modify or waive any provision of this Section 10.01, and
provided further that no amendment, waiver, or consent shall, unless in writing and signed by the
Agent in addition to the Banks required above to take such action, affect the rights or duties of
the Agent under any of the Loan Documents.

     Section 10.02. Notices, Etc. All notices and other communications provided for under this
Agreement and under the other Loan Documents to which the Borrower is a party shall be in writing
(including telegraphic, telex, and facsimile transmissions) and mailed or transmitted or delivered,
if to the Borrower, at its address at 251 O’Conner Ridge Blvd., Suite 100, Irving, Texas 75038,
Attn: T.J. Falgout, III and a copy to Hank Henderson at 1501 Southeast Walton Blvd., Suite 213,
Bentonville, Arkansas 72712, and a copy to ACM-Texas, Attn: Mark D. Slusser at 251 O’Conner Ridge
Blvd., Suite 100, Irving, TX 75038; if to BANK OF OKLAHOMA, N.A. at its address at One Williams
Center, 8th floor, Tulsa, OK 74103, Attention: John Anderson, BANK OF ARKANSAS, N.A. at its address
at P.O. Box 1407, Fayetteville, AR 72702-1404, Attention: Jeffrey R. Dunn, GREAT SOUTHERN BANK at
its address at 1451 East Battlefield, Springfield, MO 65804, Attention: Gary Lewis, LIBERTY BANK OF
ARKANSAS at its address at 318 E. Main Street, Siloam Springs, AR 72761 Attention: Steve Wilmott,
ARVEST BANK at its address at 801 Technology Drive, Little Rock, AR 72223, Attention: Tom
Wetzel, FIRST STATE BANK at its address at 620 Chestnut Street, Conway, AR 72703, Attention:
Michael Bynum and to Additional Lender at its address set forth on its signature page, attached
hereto; and if to the Agent, at its address at P.O. Box 1407, Fayetteville, AR 72702-1404,
Attention: Jeffrey R. Dunn; or, as to each party, at such other address as shall be designated by
such party in a written notice to all other parties complying as to delivery with the terms of this
Section 10.02. Except as is otherwise provided in this Agreement, all such notices and
communications shall be effective when deposited in the mails or delivered to the telegraph
company, or sent by facsimile, answerback received, respectively, addressed as aforesaid, except
that notices to the Agent pursuant to the provisions of Article 2 shall not be effective
until received by the Agent.

     Section 10.03. No Waiver. No failure or delay on the part of any Bank or the Agent in
exercising any right, power, or remedy hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise of any such right, power, or remedy preclude any other or further
exercise thereof or the exercise of any other right, power, or remedy hereunder. The rights and
remedies
provided herein are cumulative, and are not exclusive of any other rights, powers, privileges,
or remedies, now or hereafter existing, at law or in equity or otherwise.

     Section 10.04. Successors and Assigns. The Agreement shall be binding upon and inure to the
benefit of the Borrower, each Bank and the Agent and their respective successors and assigns,

43

 

except that the Borrower may not assign or transfer any of its rights under any Loan Document to
which the Borrower is a party without the prior written consent of all the Banks.

     Section 10.05. Costs, Expenses, and Taxes. The Borrower agrees to pay on demand all costs and
expenses incurred by the Agent in connection with the preparation, execution, delivery, filing, and
administration of the Loan Documents, and of any amendment, modification, or supplement to the Loan
Documents, including, without limitation, the fees and out-of-pocket expenses of counsel for the
Agent, incurred in connection with advising the Agent or any of the Banks as to their rights and
responsibilities hereunder. The Borrower also agrees to pay all such costs and expenses, including
court costs, incurred in connection with enforcement of the Loan Documents, or any amendment,
modification, or supplement thereto, whether by negotiation, legal proceedings, or otherwise. In
addition, the Borrower shall pay any and all stamp and other taxes and fees payable or determined
to be payable in connection with the executing, delivery, filing, and recording of any of the Loan
Documents and the other documents to be delivered under any such Loan Documents, and agrees to hold
the Agent and each of the Banks harmless from and against any and all liabilities with respect to
or resulting from any delay in paying or failing to pay such taxes and fees. This provision shall
survive termination of this Agreement.

     Section 10.06. Integration. This Agreement and the Loan Documents contain the entire
agreement between the parties relating to the subject matter hereof and supersedes all oral
statements and prior writings with respect thereto.

     Section 10.07. Indemnity. The Borrower hereby agrees to defend, indemnify, and hold each Bank
harmless from and against any and all claims, damages, judgments, penalties, costs, and expenses
(including attorney fees and court costs now or hereafter arising from the aforesaid enforcement of
this clause) arising directly or indirectly from the activities of the Borrower and its
Subsidiaries, its predecessors in interest, or third parties with whom it has a contractual
relationship, or arising directly or indirectly from the violation of any environmental protection,
health, or safety law, whether such claims are asserted by any governmental agency or any other
person. This indemnity shall survive termination of this Agreement.

     Section 10.08. Governing Law. This Agreement and the Notes shall be governed by, and
construed in accordance with, the laws of the State of Arkansas.

     Section 10.09. Severability of Provisions. Any provision of any Loan Document which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to
the extent of such prohibition or unenforceability without invalidating the remaining provisions of
such Loan Document or affecting the validity or enforceability of such provision in any other
jurisdiction.

     Section 10.10. Counterparts. This Agreement may be executed in any number of counterparts and
by different parties to this Agreement in separate counterparts, each of which when
so executed shall be deemed to be an original and all of which taken together shall constitute
one and the same Agreement.

44

 

     Section 10.11. Headings. Article and Section headings in the Loan Documents are included in
such Loan Documents for the convenience of reference only and shall not constitute a part of the
applicable Loan Documents for any other purpose.

     Section 10.12. Jury Trial Waiver. THE BORROWER AND EACH BANK HEREBY WAIVE TRIAL BY JURY IN
ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM, WHETHER IN CONTRACT OR TORT, AT LAW OR IN EQUITY,
ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT OR THE LOAN DOCUMENTS. NO OFFICER OR ANY
BANK OR OF THE AGENT HAS AUTHORITY TO WAIVE, CONDITION, OR MODIFY THIS PROVISION.

     Section 10.13. Additional Lender. Initially the aggregate Revolving Credit Commitment shall
equal $34,500,000; however, it is contemplated that the aggregate Revolving Credit Commitment will
increase to $40,000,000 upon the addition of one or more Additional Lenders. In furtherance
thereof, one or more Additional Lenders may be made a party hereto as determined by Agent, and any
Additional Lender made a party hereto shall execute a Signature Page attached hereto and made a
part hereof, and thereafter shall be included as a Bank under the terms of this Agreement. By
execution of the Additional Lender Signature Page and upon receipt of an original executed
promissory note equal to the Additional Lender’s Revolving Credit Commitment, each Additional
Lender shall be bound by the terms of this Agreement and entitled to all benefits of this Agreement
as though such Additional Lender or Lenders had signed on the date of this Agreement; provided,
however, that any Additional Lender shall not receive payments of principal, interest or fees
accrued hereunder or paid by the Borrower prior to the date such Additional Lender executes its
Signature Page.

     Section 10.14. USA Patriot Act Notification. IMPORTANT INFORMATION ABOUT PROCEDURES
FOR OPENING A NEW ACCOUNT. To help the government fight the funding of terrorism and money
laundering activities, Federal law requires all financial institutions to obtain, verify, and
record information that identifies each person or entity that opens an account, including any
deposit account, treasury management account, loan, other extension of credit, or other financial
services product. What this means for Borrower: When Borrower opens an account, if Borrower is an
individual, Lender will ask for Borrower’s name, taxpayer identification number, residential
address, date of birth, and other information that will allow Lender to identify Borrower, and, if
Borrower is not an individual, Lender will ask for Borrower’s name, taxpayer identification number,
business address, and other information that will allow Lender to identify Borrower. Lender may
also ask, if Borrower is an individual, to see Borrower’s driver’s license or other identifying
documents, and, if Borrower is not an individual, to see Borrower’s legal organizational documents
or other identifying documents.

[Remainder of Page Intentionally Left Blank]

45

 

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

	 	 	 	 	 	 	 
	 	 	“BORROWER”
	 
	 	 	 	 	 	 
	 	 	COLONIAL AUTO FINANCE, INC.,
	 	 	an Arkansas corporation,
	 
	 	 	 	 	 	 
	 
	 	By	 	/s/	 	 
	 	 	 	 	 
	 

	 	Name	 	 	 	 
	 	 	 	 	 
	 

	 	Title	 	 	 	 
	 	 	 	 	 

[Signature Page to Amended and Restated Agented Revolving

Credit Agreement dated June 23, 2005]

46

 

	 	 	 	 	 
	 	 	“BANKS”
	 
	 	 	 	 
	Revolving Credit Commitment:	 	BANK OF OKLAHOMA, N.A.
	$19,000,000

	 	 	 	 
	 
	 	 	 	 
	Principal Office and Lending Office

	 	 	 	 
	P.O. Box 2300

	 	 	 	 
	Tulsa, OK 74192

	 	By
	 	/s/ Jeffrey R. Dunn
	 

	 	 	 	 
	Attn: John Anderson

	 	 	 	Jeffrey R. Dunn, Vice President
	janderson@bokf.com
	 	 	 	 

[Signature Page to Amended and Restated Agented Revolving

Credit Agreement dated June 23, 2005]

47

 

	 	 	 	 	 
	Revolving Credit Commitment:	 	BANK OF ARKANSAS, N.A.

	$1,000,000

	 	 	 	 
	 
	 	 	 	 
	Principal Office and Lending Office:

	 	 	 	 
	P.O. Box 1407

	 	 	 	 
	Fayetteville, AR 72702-1404

	 	By
	 	/s/ Jeffrey R. Dunn
	 

	 	 	 	 
	Attention: Jeffrey R. Dunn

	 	 	 	Jeffrey R. Dunn, President & CEO
	jdunn@bokf.com
	 	 	 	 

[Signature Page to Amended and Restated Agented Revolving

Credit Agreement dated June 23, 2005]

48

 

	 	 	 	 	 
	Revolving Credit Commitment:	 	ARVEST BANK
	$5,000,000

	 	 	 	 
	 
	 	 	 	 
	Principal Office and Lending Office:

	 	 	 	 
	801 Technology Drive

	 	 	 	 
	Little Rock, AR 72223

	 	By
	 	/s/ Tom Wetzel
	 

	 	 	 	 
	Attention: Tom Wetzel

	 	 	 	Tom Wetzel, Senior Vice President
	rwetzel@arvest.com
	 	 	 	 

[Signature Page to Amended and Restated Agented Revolving

Credit Agreement dated June 23, 2005]

49

 

	 	 	 	 	 
	Revolving Credit Commitment:	 	GREAT SOUTHERN BANK
	$5,000,000

	 	 	 	 
	 
	 	 	 	 
	Principal Office and Lending Office:

	 	 	 	 
	1451 E. Battlefield

	 	 	 	 
	Springfield, MO 65804

	 	By
	 	/s/ Gary Lewis
	 

	 	 	 	 
	Attn: Gary Lewis

	 	 	 	Gary Lewis, Vice President
	glewis@greatsouthernbank.com
	 	 	 	 

[Signature Page to Amended and Restated Agented Revolving

Credit Agreement dated June 23, 2005]

50

 

	 	 	 	 	 
	Revolving Credit Commitment:	 	LIBERTY BANK OF ARKANSAS
	$2,500,000
	 	 	 	 
	 
	Principal Office and Lending Office:
	 	 	 	 
	318 E. Main Street
	 	 	 	 
	Siloam Springs, AR 72761

	 	By
	 	/s/ Steve Wilmott
	 

	 	 	 	 
	Attn: Steve Wilmott, Senior Vice President

	 	 	 	Steve Wilmott, Senior Vice President

	E-mail: swilmott@mylibertybank.com
	 	 	 	 

[Signature Page to Amended and Restated Agented Revolving

Credit Agreement dated June 23, 2005]

51

 

	 	 	 	 	 
	Revolving Credit Commitment:	 	FIRST STATE BANK
	$2,000,000

	 	 	 	 
	 
	 	 	 	 
	Principal Office and Lending Office:

	 	 	 	 
	620 Chestnut Street

	 	 	 	 
	Conway, AR 72703

	 	By
	 	/s/ Michael Bynum
	 

	 	 	 	 
	Attention: Michael Bynum

	 	 	 	Michael Bynum, Senior Vice President
	mbynum@fsbmail.com
	 	 	 	 

[Signature Page to Amended and Restated Agented Revolving

Credit Agreement dated June 23, 2005]

52

 

	 	 	 	 	 
	 	 	“AGENT”
	 
	 	 	 	 
	 	 	BANK OF ARKANSAS, N.A.
	 
	 	 	 	 
	 

	 	By
	 	/s/ Jeffrey R. Dunn
	 

	 	 	 	 
	 

	 	 	 	Jeffrey R. Dunn, President
	 
	 	 	 	 
	 	 	“PAYING AGENT”
	 
	 	 	 	 
	 	 	BANK OF OKLAHOMA, N.A.
	 
	 	 	 	 
	 

	 	By
	 	/s/ Jeffrey R. Dunn
	 

	 	 	 	 
	 

	 	 	 	Jeffrey R. Dunn, Vice President

[Signature Page to Amended and Restated Agented Revolving

Credit Agreement dated June 23, 2005]

53

 

ADDITIONAL LENDER

(If more than one Additional Lender, each shall

execute an original of this page separately.)

     By execution hereof, Additional Lender hereby acknowledges and confirms that: (i) it has
received a copy of this Agreement with all Exhibits attached, and such other documents and
information as it has deemed appropriate to make its decision to enter into this Agreement; (ii) it
agrees to all terms and provisions contained therein, and agrees to be bound thereby; (iii) it will
perform in accordance with their terms all of the obligations which by the terms of this Agreement
are required to be performed by it as a Bank hereunder; and (iv) the Commitment of Additional
Lender hereunder shall be $_________.

     Executed this ___day of _________, 20___.

	 	 	 	 	 	 	 
	 	 	“ADDITIONAL LENDER”
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 
	 

	 	Name	 	 	 	 
	 

	 	 	 	 
	 

	 	Title	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Principal Office and Lending Office:
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	Notice Address:
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 

54

 

Exhibit “A”

(Borrowing Base Certificate)

55

 

COLONIAL AUTO FINANCE, INC.

BORROWING BASE CERTIFICATE

     Pursuant to Section 2.01 of the Amended and Restated Agented Revolving Credit Agreement dated
June 23, 2005, (“Credit Agreement”) between COLONIAL AUTO FINANCE, INC., an Arkansas corporation,
as “Borrower,” and BANK OF ARKANSAS, N.A., as “Agent,” for the Banks (as defined in the Credit
Agreement) and as inducement for Banks to advance funds under the $34,500,000 Revolving Line of
Credit established thereunder, the undersigned hereby certifies to Banks, as of _________,
the following:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal	 	 	Interest	 	 	Total	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	1.	 	 	Beginning Accounts Receivable
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	2.	 	 	Plus New Financed Contracts
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	3.	 	 	Less Collections
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	4.	 	 	Less Repossessions and Write-offs
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	5.	 	 	Equals Ending Accounts Receivable
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	6.	 	 	Less Past Due Accounts (>4 Weeks)
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	7.	 	 	Less Bankrupt Accounts
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	8.	 	 	Less Accounts Ineligible for Other Reasons
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	9.	 	 	Equals Ending Eligible Accounts Receivable
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	10.	 	 	Advance Rate (50% Eligible Vehicle Contracts
less Advance Rate Adjustment Percent)
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	11.	 	 	Subtotal
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	12.	 	 	Less $5,000,000
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	13.	 	 	Equals Borrowing Base
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	14.	 	 	Less Loan Balance
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	15.	 	 	Equals Available to Borrow
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

ASSIGNMENT AND CERTIFICATION

     The undersigned Borrower hereby assigns, transfers and pledges to BANK OF ARKANSAS,
N.A. (“lender”) and grants and agrees that Lender has a security interest in, pursuant to the
Amended and Restated Agented Revolving Credit Agreement and Security Agreement between Borrower and
Lender, all of Borrower’s Contracts, as defined therein, made or acquired on or before the date
hereof, as security for the repayment of Borrower’s present (Line 14 above) and future, if any,
indebtedness to Lender including the loan made by Lender to the Borrower concurrently herewith.
The undersigned hereby warrants and certifies to Lender that all Contracts created or acquired
since the prior assignments are included herein, that the amounts aggregated in Line 5 constitute
the total balances on all Contracts on the books and records of Borrower at said date and there is
now owing on the Contracts such amount, and that all collections received on Contracts have been
duly and

 

 

regularly entered to the credit of the respective debtors on the books and records of
Borrower and are
reflected in all reports to Lender. The undersigned further certifies that none of the
contracts have been sold, assigned or pledged to any other party.

     Dated: __________________.

	 	 	 	 	 
	 	 	COLONIAL AUTO FINANCE, INC.
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	Its	 
	 

	 	 	 	 

     This Assignment and Certification is accepted by BANK OF ARKANSAS, N.A., in reliance on the
certification and warranties of Borrower herein and those contained in said Amended and Restated
Agented Revolving Credit Agreement and Security Agreement.

	 	 	 	 	 
	 	 	BANK OF ARKANSAS, N.A.
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	Jeffrey R. Dunn, President

 

 

Exhibit “B”

(Guaranty)

 

 

Exhibit “C-1”

(Security Agreement-Borrower)

 

 

Exhibit “C-2”

(Security Agreement-ACM)

 

 

Exhibit “C-3”

(Security Agreement-TCM)

 

 

Exhibit “D-1:D-7”

(Promissory Notes)

 

 

Exhibit “E”

(Opinion of Borrower’s Counsel)

 

 

Exhibit “F”

(Opinion of Guarantor’s Counsel)

 

 

Exhibit “G”

(Subsidiaries of Borrower)

As of the Closing Date, the following are subsidiaries of the Borrowers:

	 	 	 
	Name:

	 	Colonial Underwriting, Inc.
	State of Incorporation:

	 	Arkansas
	Shares Outstanding:

	 	1,000 common shares
	Shares Owned By:

	 	100% owned by Colonial Auto Finance, Inc.

 

 

Exhibit “H”

(List of Borrower’s Debt)

     On the Closing Date, the following credit agreements, indentures, guaranties, capital leases, and
other investments, agreements and arrangements in excess of $250,000 as described in Section 4.14
of the Agented Revolving Credit Agreement are outstanding:

                    ACM Sub-Debt

                    ACM-Texas Sub-Debt

 

 

Exhibit “I”

(Contract Forms)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]