Document:

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                                                                    EXHIBIT 10.4

                         ASSET ACCEPTANCE HOLDINGS LLC
                    YEAR 2002 SHARE APPRECIATION RIGHTS PLAN
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         1. PURPOSE. The purpose of this Asset Acceptance Holdings LLC Year 2002
Share Appreciation Rights Plan (the "Plan") is to further the long-term
stability and financial success of Asset Acceptance Holdings LLC (the "Company")
by attracting and retaining key Employees through the awarding of Share
Appreciation Rights (as those terms are defined herein). It is believed that
participation in the Plan will stimulate the efforts of those Employees upon
whose judgment and interest the Company and its Subsidiaries are and will be
largely dependent for the successful conduct of their businesses. It also is
believed that Share Appreciation Rights awards granted to such Employees under
the Plan will strengthen their desire to remain with the Company and its
Subsidiaries and will further the alignment of those Employees' interests with
those of the Company's Shareholders.

         2. DEFINITIONS. As used in the Plan, the following terms have the
meanings indicated:

            (a) "Applicable Withholding Taxes" means the aggregate amount of
federal, state and local income and payroll taxes that the Company is required
to withhold in making payment with respect to any Share Appreciation Rights.

            (b) "Award" means an award of Share Appreciation Rights under the
Plan.

            (c) "Award Date" as to any Share Appreciation Right means the date
on which the Company awards such Share Appreciation Right to an Employee
pursuant to Section 3(a) hereof.

            (d) "Board" means the Board of Directors of the Company.

            (e) "Class B Share" means a Class B Share of membership interests of
the Company and includes any securities into which Class B Shares are converted
in a merger, Corporate Reorganization (as defined in the Company LLC Agreement)
or similar transaction, or for which Class B Shares are exchanged in a share
exchange or similar transaction.

            (f) "Code" means the Internal Revenue Code of 1986, as amended.

            (g) "Company" means Asset Acceptance Holdings LLC, a Delaware
limited liability company, and includes the surviving entity after a Corporate
Reorganization.

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            (h) "Company LLC Agreement" means the Amended and Restated Limited
Liability Company Agreement among the Company and its members dated as of
September 30, 2002, as amended.

            (i) "Control Transfer" means one or a series of related transactions
as a result of which (i) any Third Party or group of Third Parties, acting in
concert ("Acquiring Persons"), acquires, directly or indirectly, a majority of
the Company's voting securities, (ii) the Company consolidates with or merges
into or with, or effects any plan of share exchange with, any Person; and after
giving effect to such consolidation or merger or plan of share exchange, any
Acquiring Person owns, directly or indirectly, a majority of the voting
securities of the Person surviving such consolidation or merger or share
exchange; or (iii) in one transaction or a series of related transactions, all
or substantially all of the assets of the Company are sold, leased, exchanged or
otherwise transferred to any Acquiring Persons, and after giving effect to such
transaction, a majority of the voting securities of the Acquiring Persons are
owned directly or indirectly by one or more Third Parties.

            (j) "Corporate Reorganization" means a change in the legal status of
the Company from a limited liability company into a business corporation
organized under the laws of one of the states or territories of the United
States, in such form and manner (including, without limitation, by merger,
reorganization, liquidation, transfer of shares or assets of the Company or any
Subsidiary of the Company, or by any other means permissible under applicable
law) and with such classes of stock having such rights, preferences and other
terms as may be approved by the Board.

            (k) "Disability" or "Disabled" means the inability of the Employee
to perform his essential duties without reasonable accommodation for a period of
six months as determined in the good faith judgment of the Board of Directors.

            (l) "Employee" means an employee of the Company or any Subsidiary.

            (m) "Fair Market Value" of a Class B Share means as of any specified
date (i) if the Class B Shares are not traded on any exchange, automated
quotation system or over-the-counter market, the value determined by the Board
using any reasonable method in good faith; (ii) if the Shares are traded on an
exchange or automated quotation system, the average of the highest and lowest
reported sales prices at which the Shares were traded on the ten (10) trading
days immediately preceding such specified date on the exchange on which they
generally have the greatest trading volume; or (iii) if the Class B Shares are
traded on the over-the-counter market, the average between the closing high bid
and low asked prices on the business day immediately preceding such specified
date.

            (n) "Initial Public Offering" means the first Public Offering of
equity securities of the Company or its successor after a Corporate
Reorganization.
                                      -2-

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            (o)"Investors" means AAC Investors, Inc., a Virginia corporation.

            (p) "Liquidity Event" means a Control Transfer, Initial Public
Offering or Partial Sale.

            (q) "Partial Sale" means a transaction which does not constitute a
Control Transfer and as a result of which (i) any Acquiring Persons acquires,
directly or indirectly, at least twenty percent but less than a majority of the
Company's voting securities, (ii) the Company consolidates with or merges into
or with, or effects any plan of share exchange with, any Person; and after
giving effect to such consolidation or merger or plan of share exchange, any
Acquiring Person owns, directly or indirectly, at least twenty percent but less
than a majority of the voting securities of the Person surviving such
consolidation or merger or share exchange, or (iii) at least twenty percent but
less than substantially all of the assets of the Company are sold, leased,
exchanged or otherwise transferred to any Acquiring Persons, and after giving
effect to such transaction, at least twenty percent but less than a majority of
the voting securities of the Acquiring Persons are owned directly or indirectly
by one or more Third Parties.

            (r) "Participant" means any Employee who receives a Share
Appreciation Rights Award under the Plan.

            (s) "Person" means an individual, partnership, joint venture,
association, corporation, trust, estate, limited liability company, limited
liability partnership, or any other business organization or legal entity.

            (t) "Public Offering" means a public offering pursuant to an
effective registration statement (other than a registration statement on Form
S-4 or S-8 or any successor form) under the Securities Act of equity interests
of the Company or any Subsidiary, or its successor entity after a Corporate
Reorganization, that is effected through a firm commitment underwriting or an
offering pursuant to Rule 144 effected through a broker or dealer.

            (u) "Share Appreciation Right" means a right to receive payment from
the Company on the terms and conditions set forth herein.

            (v) "Shareholder" has the meaning given such term in the Company LLC
Agreement.

            (w) "Subsidiary" means any entity, whether now existing or hereafter
created or acquired, of which more than 50% of the securities entitled to vote
generally in an election of directors or managers are owned directly or
indirectly by the Company.

            (x) "Third Party" means at any time a Person who was not (i) a
Shareholder on September 30, 2002, (ii) a Permitted Transferee (as defined in
the Company LLC Agreement) of a Shareholder who was, or whose
predecessor-in-interest was, a Shareholder on September 30, 2002, (iii) an
Affiliate (as defined in the Company

                                       -3-
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LLC Agreement) of the Company or of any Person who was a Shareholder on
September 30, 2002, or (iv) an Employee on the date such Person became a
Shareholder.

         3. SHARE APPRECIATION RIGHTS.

            (a) Subject to Section 9 of the Plan, there shall be reserved for
awarding under the Plan, 2,000,000 Share Appreciation Rights. Share Appreciation
Rights awarded under the Plan that expire or are forfeited or canceled or
otherwise terminate may again be awarded under the Plan. The Board is expressly
authorized to make an Award to a Participant conditioned upon the cancellation
of an existing Award.

            (b) As of any specified date, each Share Appreciation Right shall
have a value equal to the Fair Market Value of one Class B Share as of such
specified date, reduced, but not below zero, by the Fair Market Value of one
Class B Share as of the Award Date ("SAR Value").

            (c) The award of any Share Appreciation Rights under the Plan shall
not entitle a Participant to become a member of the Company or to any voting
right or other right of a member of the Company, to receive any security of or
equity interest in the Company, to have any interest in the capital or profits
of the Company, or to any dividend or other distribution or payment right,
except as provided in Section 6 hereof.

         4. ELIGIBILITY.

            (a) All present and future Employees whom the Board determines to be
key Employees shall be eligible to receive Awards under the Plan. The Board
shall have the power and complete discretion, as provided in Section 11, to
select eligible Employees to receive Awards and to determine for each Employee
the terms and conditions and the number of Share Appreciation Rights to be
allocated to each Employee as part of each Award.

            (b) The grant of an Award shall not obligate the Company or any
Subsidiary of the Company to pay an Employee any particular amount of
remuneration (except as provided in Section 6(a) hereof), to continue the
employment of the Employee after the grant or to make further grants to the
Employee at any time thereafter.

         5. AWARDS.

            (a) Whenever the Board deems it appropriate to grant an Award,
notice shall be given to the Participant stating the number of Share
Appreciation Rights for which an Award is granted and the conditions to which
the grant of the Award are subject. The notice, when duly accepted in writing by
the Participant, shall become a Share Appreciation Rights agreement between the
Company and the Participant.

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            (b) A Participant's Share Appreciation Rights may vest in whole or
in part at such times as may be specified by the Board in the Participant's
Share Appreciation Rights agreement.

            (c) The Board may, in its discretion, grant Share Appreciation
Rights that by their terms become fully or partially vested upon a Liquidity
Event of the Company, notwithstanding other conditions for vesting in the Share
Appreciation Rights agreement.

        6.  PAYMENT. After the Share Appreciation Rights vest, the Company shall
pay to the Participant an amount equal to the SAR Value of his vested Share
Appreciation Rights at such time and in such manner as is set forth in the
Award, as reflected in the Share Appreciation Rights agreement with respect to
such Award.

        7.  NONTRANSFERABILITY OF SHARE APPRECIATION RIGHTS. Share Appreciation
Rights by their terms shall not be transferable, except that upon the death of a
Participant, his heirs, devisees, personal representatives, or trustee or
beneficiaries of a revocable trust of which the Participant is the grantor shall
succeed to such Participant's rights subject to the terms of the Plan and the
Participant's Share Appreciation Rights agreement.

        8.  EFFECTIVE DATE OF THE PLAN. The effective date of the Plan is
September 30, 2002.

        9.  TERMINATION AND MODIFICATION. If not sooner terminated by the Board,
this Plan shall terminate at the close of business on September 30, 2012. No
Awards shall be granted under the Plan after its termination. The Board may
terminate the Plan or may amend the Plan in such respects as it shall deem
advisable. A termination or amendment of the Plan shall not, without the
consent of the Participant, adversely affect a Participant's rights under an
Award previously granted to him.

        10. CHANGE IN CAPITAL STRUCTURE. In the event of a Corporate
Reorganization, share dividend, share split or combination of shares,
recapitalization or merger or other change in the Company's shares (including,
but not limited to, the creation or issuance to shareholders generally of
rights, options or warrants for the purchase of shares of the Company), the
number and kind of Share Appreciation Rights to be subject to the Plan and to
Awards then outstanding or to be granted thereunder and the maximum number of
Share Appreciation Rights which may be awarded under the Plan shall be
appropriately adjusted by the Board, whose good faith determination shall be
binding on all persons. If the adjustment would produce fractional Share
Appreciation Rights, the Board may adjust appropriately the number of Share
Appreciation Rights covered by the Award so as to eliminate the fractional
shares.

        11. ADMINISTRATION OF THE PLAN. The Plan shall be administered by the
Board:

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            (a) Subject to the provisions of a Participant's Share Appreciation
Rights agreement and the Plan, the Board shall have the power and complete
discretion to determine (i) which eligible Employees shall receive Awards, (ii)
the number of Share Appreciation Rights to be covered by each Award, (iii) the
Fair Market Value of Share Appreciation Rights, (iv) the time or times when an
Award shall be granted and how it will become payable, (v) the conditions under
which Share Appreciation Rights shall be forfeited or become no longer subject
to forfeiture, (vi) when payment shall be made with regard to vested Share
Appreciation Rights, (vii) whether a Disability exists, (viii) the form of
payment with respect to Share Appreciation Rights for which the Liquidity Event
arises from other than a Control Transfer of the Company in connection with
which the holders of Class B Shares receive only cash, (ix) the Company's right
to purchase vested Share Appreciation Rights from a Participant, (x) conditions
relating to the length of time before disposition of Class B Shares, if any,
received in exchange for Share Appreciation Rights is permitted, (xi) notice
provisions relating to the sale of Class B Shares, if any, acquired under the
Plan, and (xii) any additional requirements relating to Awards that the Board
deems appropriate. The Board shall have the power to amend the terms of any
previously granted Award so long as the terms as amended are consistent with the
terms of the Plan and provided that the consent of the Participant is obtained
with respect to any amendment that would adversely affect the Participant's
rights under an Award granted to him.

            (b) The Board may adopt rules and regulations for carrying out the
Plan. The interpretation and construction of any provision of the Plan by the
Board shall be final and conclusive. The Board may consult with counsel, who may
be counsel to the Company, and shall not incur any liability for any action
taken in good faith in reliance upon the advice of counsel.

        12. NOTICE. All notices and other communications required or permitted
to be given under this Plan shall be in writing and shall be deemed to have
been duly given if delivered personally or mailed first class, postage prepaid,
as follows (i) if to the Company - at its principal business address to the
attention of the Chief Executive Officer; (ii) if to any participant - at the
last address of the Participant known to the sender at the time that the notice
or other communication is sent.

        13. INTERPRETATION.  The terms of this Plan shall be governed by the
laws of the State of Michigan without regard to choice of law provisions
thereunder. Capitalized terms not defined herein shall have the meaning given
those terms in the Company LLC Agreement.

                                       -6-
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         IN WITNESS WHEREOF, the Company has caused this Plan to be executed as
of the date stated on page one hereof.

                                           ASSET ACCEPTANCE HOLDINGS LLC
                                           a Delaware limited liability company,

                                           By:________________________________
                                              Nathaniel F. Bradley IV
                                              President

                                           Dated: September 30, 2002

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                                                                   EXHIBIT 10.5

[AS MODIFIED]

                                                October __, 2003

PERSONAL AND CONFIDENTIAL

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         RE: SHARE APPRECIATION RIGHTS AGREEMENT

Dear ___________:

         Asset Acceptance Holdings LLC (the "Company") has chosen you to receive
an Award of Share Appreciation Rights pursuant to the Asset Acceptance Holdings
LLC Year 2002 Share Appreciation Rights Plan dated as of September 30, 2002 (the
"Plan"). The Award is subject to the terms of this letter agreement and the
Plan. A copy of the Plan is attached hereto as Exhibit A and incorporated herein
by reference. Capitalized terms used and not otherwise defined herein are
defined in Exhibit B attached hereto or in the Plan. This Award is effective as
of the date set forth above (the "Award Date").

         A.     AWARD. Subject to the terms contained in the Plan and herein,
the Company hereby awards you __ share appreciation rights ("your Share
Appreciation Rights"). The purpose of this Award is to provide you, as a
valuable Employee, with a substantial incentive in the form of an indirect
equity participation in the Company. When vested, your Share Appreciation
Rights will entitle you to receive from the Company an amount equal to the
appreciation in the value of __Class B Shares in the Company realized as of the
date of payment of your Share Appreciation Rights. For purposes of calculating
such Share Appreciation Rights, the value of each Class B Share on the Award
Date is One Dollar ($1.00). Your Share Appreciation Rights will vest and
qualify for payment on the terms set forth in Section B.

         B.     TERMS OF AWARD.

                (1) GENERAL. Your Share Appreciation Rights will vest when the
provisions described in paragraph (2) are met; provided, that except as provided
in subparagraph (2)(f) below, you must continue to be an Employee at all times
through the appropriate vesting date in order for the Share Appreciation Rights
to become vested; and provided further, you must continue to be an Employee at
all times through the date of payment for you to receive payment thereon.

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                (2) VESTING. Your Share Appreciation Rights will become
vested, without duplication, as to the number of Share Appreciation Rights
indicated below if and when the following conditions are satisfied:

                (a) Liquidity Event -- Control Transfer; Initial Public
          Offering. In the event that on or before September 30, 2012, as a
          result of (i) a sale of membership interests in the Company and/or
          shares of capital stock in the shareholders (including AAC Investors,
          Inc. ("Investors")) of the Company, or a sale of substantially all of
          the assets of the Company, in a transaction constituting a Control
          Transfer (valuing all of the shares of capital stock in Investors or
          the Class A-1 Shares and Class A Shares held by Investors immediately
          before the Control Transfer at the value established for each such
          class of securities that are transferred in the Control Transfer or at
          the value otherwise established as a result of the consummation of the
          Control Transfer) or (ii) an Initial Public Offering (valuing the
          shares of common stock into which the Class A-1 Shares and Class A
          Shares are converted that are held by Investors immediately before the
          Initial Public Offering at the per share price to public in the
          Initial Public Offering) (each of clause (i) and (ii) shall also be
          referred to as a "Liquidity Event"), the pretax internal rate of
          return ("IRR") realized by Investors over the term of its investment
          in the Company through the date of closing of the Liquidity Event, and
          after giving effect to the liabilities that would be caused by the
          payment of all Share Appreciation Rights vested under the Plan, is:

                (i)   at least 30%, but less than 40%, then _________ Share
                      Appreciation Rights plus such number of Share Appreciation
                      Rights determined by multiplying ___________ by a
                      fraction, the numerator of which is the amount by which
                      the IRR exceeds 30% and the denominator of which is 10%
                      shall vest;

                (ii)  at least 40%, but less than 50%, then _________ Share
                      Appreciation Rights plus such number of Share Appreciation
                      Rights determined by multiplying ___________ by a
                      fraction, the numerator of which is the amount by which
                      the IRR exceeds 40% and the denominator of which is 10%
                      shall vest;

                (iii) 50% or more, then _________ Share Appreciation Rights
                      shall vest.

                (b) Partial Sale. In the event that on or before September 30,
          2012, as a result of a Partial Sale, the IRR realized by Investors
          over the term of the investment through the closing date of the
          Partial Sale (valuing all of the shares of capital stock in Investors
          or the Class A-1 Shares and Class A Shares held by Investors
          immediately before the Partial Sale at the value established for each
          such class of securities that are transferred in the Partial Sale or
          at the value otherwise established as a result of the consummation of
          the Partial Sale) is at least 30%, then the Share Appreciation Rights,
          to the extent not theretofore vested or expired, shall as of the
          closing date of such Partial Sale, vest as to

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          the number of Share Appreciation Rights calculated as set forth in
          paragraph (a) of this Section B(2) multiplied by the percentage of the
          shares of capital stock in Investors or of the Class A-1 Shares and
          Class A Shares held by Investors transferred in such Partial Sale.

                (c) Control Transfer after Partial Sale. In the event of a
          vesting of less than all of the Share Appreciation Rights pursuant to
          paragraph (b) of this Section B(2) followed by a subsequent Control
          Transfer or IPO before September 30, 2012, the IRR realized by
          Investors over the term of its investment in the Company through the
          date of closing of such Control Transfer taking into account, for
          purposes of this paragraph (c) only the cash, if any, received by
          Investors in the Partial Sale and valuing all of the shares of capital
          stock in Investors or the Class A-1 Shares and Class A Shares held by
          Investors immediately before the Control Transfer at the value
          established for each such class of securities that are transferred in
          the Control Transfer or at the value otherwise established as a result
          of the consummation of the Control Transfer would have resulted in a
          greater number of Share Appreciation Rights vesting under clauses (i)
          through (iii) of paragraph (a) of this Section B(2) than vested
          pursuant to paragraph (b) of this Section B(2), then additional Share
          Appreciation Rights shall vest in an amount equal to the difference
          between (1) the number of Share Appreciation Rights that would have
          vested as a result of the IRR realized by the combination of the
          Partial Sale and the Control Transfer and (2) the number of Share
          Appreciation Rights theretofore vested pursuant to paragraph (b) of
          this Section B(2).

                (d) Timing of Rights. In the event of a transaction or series of
          transactions resulting in the sale, directly or indirectly, of all of
          the equity interests in or assets of the Company that does not result
          in the vesting of all of the Share Appreciation Rights covered hereby
          pursuant to paragraph (a), (b) or (c) of this Section B(2), the
          unvested portion of the Share Appreciation Rights, and the right to
          receive payment thereon, shall expire as of the date of closing of
          such sale.

                (e) Interpretation. The Board shall have complete discretion to
          determine in good faith whether the provisions of paragraph (a), (b)
          or (c) of this Section B(2) have been satisfied.

                (f) Termination of Employment

                    (i) Except as described below in paragraph (ii) of this
                Section B(2)(f), if your employment is terminated with the
                Company for any reason, your Share Appreciation Rights and
                rights to any future payments shall terminate upon the effective
                date of the termination of employment.

                    (ii) If your employment with the Company and its
                Subsidiaries is terminated by reason of your death or Disability
                or by the Company other than for

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                     Cause, on or prior to September 30, 2012, you will retain
                     the following percentage of your Share Appreciation Rights
                     (i.e., "conditionally vested"):

<TABLE>
<CAPTION>

                                          Date                                          Percent
                                           of                                         Conditionally
                                       Termination                                       Vested
                                       -----------                                    -------------
                     <S>                                                              <C>
                     Prior to October 1, 2004                                               0%
                     On or after October 1, 2004 and before October 1, 2005                25%
                     On or after October 1, 2005 and before October 1, 2006                50%
                     On or after October 1, 2006 and before October 1, 2007                75%
                     On or after October 1, 2007 and before October 1, 2012               100%
</TABLE>

         [TO COME - MODIFICATION OF DATES IF SAR GRANTED AFTER 9.30.02]

         Final vesting of your "conditionally vested" Share Appreciation Rights
         will be dependent upon satisfaction of the applicable provisions of
         paragraphs (a), (b) and/or (c) of this Section B(2), so that your
         "conditionally vested" Share Appreciation Rights will not be entitled
         to payment unless the provisions of paragraph (a), (b) and/or (c) of
         this Section B(2) are satisfied, and if such conditions are not
         satisfied your "conditionally vested" Share Appreciation Rights, and
         the right to receive payment thereon, will expire on September 30,
         2012.

                (g) Initial Public Offering of Parent or Company.
          Notwithstanding anything to the contrary contained in Section B(2)(a),
          in the event that on or before September 30, 2012 (i) an entity that
          holds, directly or indirectly through one or more subsidiaries, 90% or
          more of the membership interests of the Company having the right to
          vote for members of the Board (the "Parent"), shall consummate a sale
          of shares of common stock of the Parent pursuant to an underwritten
          initial public offering registered under the Securities Act of 1933,
          as amended (a "Parent IPO"), or (ii) there shall be an Initial Public
          Offering by the Company or its successor after a Corporate
          Reorganization, then, in the case of (i) or (ii) above, at any time on
          or after the closing of the Parent IPO or the Initial Public Offering
          of the Company, the Company shall have the right, but not the
          obligation, to vest 100% of the Share Appreciation Rights subject to
          the Award and held by you pursuant to written notice given to you
          stating the effective date of such vesting.

                (3) PURCHASE BY THE COMPANY UPON TERMINATION OF EMPLOYMENT. If
your employment with the Company or a Subsidiary is terminated for any reason
whatsoever, including by the Company or a Subsidiary without Cause, the Company
shall have the right, exercisable in its sole election, to purchase, and you
shall have the obligation, upon such exercise by the Company, to sell to the
Company all or any portion of your vested Share Appreciation Rights for an
amount equal to their SAR Value as of the date of the termination of your
employment. If the Company elects to exercise its right, the Company will notify
you in writing

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         not later than ninety (90) days after the termination of your
         employment of the number of your vested Share Appreciation Rights that
         it has elected to purchase and the purchase price to be paid in
         exchange for such Share Appreciation Rights. The Company shall make
         payment to you by Company check for the Share Appreciation Rights that
         it has elected to purchase not later than 120 days after the effective
         date of the termination of your employment. Effective with such
         payment, you shall irrevocably assign such rights to the Company free
         of all liens and encumbrances of any kind and shall execute such
         documents and take such other action as the Company reasonably requests
         to evidence such transfer.

               (4)  PAYMENT AFTER VESTING.

                    (a) General. On the later of (i) contemporaneously with the
         consummation of a Liquidity Event or (ii) at the earlier of (A) the
         date after the Liquidity Event as you shall determine or (B) the date
         after the Liquidity Event as the Company shall determine, the Company
         shall pay you an amount equal to the SAR Value of your vested Share
         Appreciation Rights as of such date of payment, calculated in
         accordance with Section 6 of the Plan. NOTWITHSTANDING ANYTHING IN THIS
         LETTER AGREEMENT TO THE CONTRARY, EXCEPT AS EXPRESSLY PROVIDED IN
         SECTION B(4)(b) BELOW, YOU SHALL NOT BE ENTITLED TO RECEIVE PAYMENT ON
         ANY VESTED SHARE APPRECIATION RIGHTS EXCEPT ON THE SAME RELATIVE BASIS
         UPON WHICH THE INVESTORS RECEIVE LIQUIDITY (I.E., CASH) IN THE
         TRANSACTION OR TRANSACTIONS CONSTITUTING THE LIQUIDITY EVENT UNLESS
         INVESTORS, IN ITS SOLE DISCRETION AGREES THAT A GREATER PAYMENT MAY BE
         MADE.

                    (b) Election by Company - Initial Public Offering of Parent
         or Company. In the event the Company elects to vest your Share
         Appreciation Rights pursuant to Section B(2)(g) above, then the Company
         shall pay you an amount equal to the SAR Value of your vested Share
         Appreciation Rights as of the effective date of such vesting,
         calculated in accordance with Section 6 of the Plan, with such payment
         to be as follows:

                         (i) The Company shall withhold an amount equal to your
         Applicable Withholding Taxes and make payment thereof on your behalf
         directly to the applicable federal, state and local tax authorities in
         accordance with applicable tax laws; and

                         (ii) The Company shall deliver to you unregistered
         shares of the common stock of the Parent or the Company, as the case
         may be (the "Section B(2)(g) Shares"), valued at the Section B(2)(g)
         Share Fair Market Value (as defined below) as of the effective date of
         such vesting, in an amount equal to the SAR Value of your vested Share
         Appreciation Rights minus the cash payment made pursuant to
         subparagraph (i) above, provided that such delivery of the Section
         B(2)(g) Shares shall not be made until after you have made your Section
         83(b) Election Filing (as defined below).

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                  As used herein, "Section B(2)(g) Share Fair Market Value"
         means the following as determined by the Board in good faith:

                    (w) if the effective date of such vesting is as of the
         closing of the Parent IPO or the Initial Public Offering of the
         Company, the initial per share price to public;

                    (x) if the Section B(2)(g) Shares are traded on an exchange,
         the average of the highest and lowest registered sales prices of such
         shares on the primary exchange on which the Section B(2)(g) Shares are
         traded for the ten (10) trading day period ending on the trading day of
         or closest to the effective date of such vesting;

                    (y) if the Section B(2)(g) Shares are traded on the
         over-the-counter market, the average between the closing high bid and
         low asked prices as reported by the Nasdaq Stock Market for the ten
         (10) trading day period ending on the trading day of or closest to the
         effective date of such vesting; or

                    (z) if the effective date of such vesting is other than as
         of the closing of the Parent IPO or the Initial Public Offering of the
         Company and if the Section B(2)(g) Shares are not traded on any
         exchange or over-the-counter market, the fair market value shall be
         determined by the Board using any reasonable method in good faith.

             Upon the effective date of such vesting pursuant to Section
         B(2)(g), your rights with respect to your Share Appreciation Rights
         will be deemed after such effective date, for all purposes, to evidence
         solely your right to receive the payment described in this subsection
         (b) and, without limiting the generality of the foregoing, the SAR
         Value of your Share Appreciation Rights shall be fixed as of the
         effective date of such vesting and shall not change thereafter.

             (5) NON-TRANSFERABILITY. This Award is not transferable or
assignable by you. In the event of your death, your devisees, personal
representatives, or trustee or beneficiaries of a revocable trust of which you
are the grantor (collectively, "Successors") will succeed to your Share
Appreciation Rights subject to the terms of the Plan and this letter agreement.
All agreements made by you in this letter agreement shall be binding on your
Successors.

      C.     OTHER CONDITIONS.

             (1) CAPITAL STRUCTURE CHANGES. As provided in the Plan, appropriate
adjustments shall be made in the number and kind of Share Appreciation Rights
should there be a change in the capital structure of the Company, and the Board
may take appropriate actions in good faith with respect to the Award in the
event of a significant corporate transaction.

<PAGE>

                      [name]
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                      [date]
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Page 7

                (2)    WITHHOLDING.

                       (a) General. By signing this letter agreement, you
         agree to make arrangements satisfactory to the Company to comply with
         any income and payroll tax withholding requirements that may apply.

                       (b) Section 83(b) Election - Election by Company -
         Initial Public Offering of Parent or Company. In the event the Company
         elects to vest your Share Appreciation Rights pursuant to Section
         B(2)(g) above, then you agree to timely file, in form and substance
         satisfactory to the Company, an election under Section 83(b) of the
         Internal Revenue Code of 1986, as amended, relative to the value of and
         the transfer restrictions and call rights set forth in the Shareholder
         Agreement (as defined below) related to the Section B(2)(g) Shares
         delivered to you pursuant to Section B(4)(b)(ii) above (the "Section
         83(b) Election Filing"), provided that, if you do not make such Section
         83(b) Election Filing within twenty-five (25) days after written notice
         given to you by the Company under Section B(2)(g) of such vesting of
         your Share Appreciation Rights, then all of your rights under and with
         respect to your Share Appreciation Rights shall be terminated and
         without further force or effect.

                (3) NO RIGHT TO RECEIVE SHARES. Under no circumstances shall you
have the right to receive any Class B Shares as a result of the Award or this
letter agreement, except pursuant to Section B(4)(b)(ii).

                (4) SHAREHOLDER AGREEMENT - TRANSFER RESTRICTIONS; CALL RIGHTS;
ETC. As a condition precedent to the receipt of any Section B(2)(g) Shares, you
agree to promptly enter into a shareholder agreement, in substantially the form
of Exhibit C attached hereto, effective as of the date of delivery of the
Section B(2)(g) Shares relative to certain transfer restrictions, call rights
and other provisions relative to the Section B(2)(g) Shares delivered to you
pursuant to Section B(4)(b)(ii) above (the "Shareholder Agreement").

                (5) NO RIGHTS PRIOR TO ISSUANCE OF SHARES. You shall not have
any rights as a shareholder with respect to the Section B(2)(g) Shares until the
issuance of a stock certificate for such shares. No adjustment shall be made for
dividends or other rights with respect to such shares for which the record date
is prior to the date the certificate is issued.

                (6) COMPLIANCE. Anything to the contrary herein notwithstanding,
the Company's obligation to deliver the Section B(2)(g) Shares pursuant to
Section B(4)(b)(ii) above is subject to such compliance with federal and state
laws, rules and regulations applying to the authorization, issuance or sale of
securities as the Company deems necessary or advisable. The Company shall not be
required to deliver such shares unless and until it receives satisfactory
assurance that the issuance or transfer of such shares will not violate any of
the provisions of the Securities Act of 1933, or the rules and regulations
promulgated thereunder, the provisions of

<PAGE>

                      [name]
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                      [date]
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Page 8

any state laws governing the sale of securities, or that there has been
compliance with the provisions of such acts, rules, regulations and laws.

        D. NOTICE. Written notice is deemed to have been given to you or
to the Company and the Board if delivered personally or mailed first class,
postage prepaid, to you at your last address as shown in the records of the
Company, or to the Company at the principal business address of the Company,
6985 Miller Road, Warren, Michigan 48092, Attention: President, with a copy to
Quad-C Management, Inc., 230 East High Street, Charlottesville, Virginia 22902,
Attention: Anthony R. Ignaczak, or at such other address or to the attention of
such other person as the recipient shall have specified by prior written notice.

        E. AGREEMENT. In consideration of the grant of the Award, you
hereby agree that you will comply with such other conditions as the Board may
impose on the Award and will perform such duties as may be assigned to you from
time to time by the Board or by the Executive Officers of the Company; provided
that the foregoing shall not be inconsistent with the Plan; and provided further
that the provisions of this sentence shall not be interpreted as affecting any
right that the Company or any of its Subsidiaries may have to terminate your
employment, with or without Cause, at any time for any reason whatsoever.

  This letter agreement shall be governed by the laws of the State of Michigan.

<PAGE>

                      [name]
----------------------
                      [date]
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Page 9

         If you agree to the foregoing terms and conditions, please sign both
copies of this letter agreement and return one fully executed original to the
Chief Executive Officer of the Company. The remaining original letter is for
your records.

                                   Sincerely,

                                   ASSET ACCEPTANCE HOLDINGS LLC

                                   By:_____________________________________
                                      Nathaniel F. Bradley IV
                                      President

         I hereby accept the Award on the terms set forth in this letter
agreement and in the Asset Acceptance Holdings LLC Year 2002 Share Appreciation
Rights Plan, and this letter agreement shall be a binding agreement between the
Company and me.

                                   _____________________________________
                                   [name]

<PAGE>

                                    EXHIBIT A

                                    THE PLAN

<PAGE>

                                    EXHIBIT B

                                   DEFINITIONS

                  "CAUSE" means with respect to the termination of an Employee
as an employee of the Company or a Subsidiary of the Company:

                    (i)    continual or deliberate neglect by such Employee in
             the performance of his or her material duties;

                    (ii)   failure by such Employee to devote substantially all
             of his or her working time to the business of the Company and its
             Subsidiaries;

                    (iii)  such Employee's willful failure to follow the
             directives of the Board of Directors or the Chief Executive Officer
             of the Company in any material respect;

                    (iv)   such Employee's engaging willfully in misconduct in
             connection with the performance of any of his or her duties which
             is reasonably likely, in the good faith judgment of the Board, to
             result in material injury to the reputation of the Company or any
             of its Subsidiaries, including, without limitation, the
             misappropriation of funds;

                    (v)    such Employee's breach of the provisions of any
             noncompetition, noninterference, nondisclosure, confidentiality or
             other similar agreement executed by such Employee with the Company
             or any of its Subsidiaries; or

                    (vi)   such Employee's engaging in conduct which is
             reasonably likely, in the good faith judgment of the Board, to
             result in material injury to the reputation of the Company or any
             of its Subsidiaries, including, without limitation, commission of a
             felony, fraud, embezzlement or other crime involving moral
             turpitude;

provided that with respect to the events set forth in clauses (i) through (iii),
the or Employee shall have been given written notice of the act, omission or
event constituting Cause and shall not have cured such act, omission or event
within 30 days after the giving of such notice.

<PAGE>

                                    EXHIBIT C

                          FORM OF SHAREHOLDER AGREEMENT

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